Australian supermarket giant Woolworths Group is selling a 5.5 per cent stake in Endeavour Group for $636 million.

Woolworths spun off Endeavour Group – its then drinks and hotels business – in mid-2021 and the company has since grown strongly on its own. After the sale, Woolworths retains just 9.1 per cent of the business.

In a statement, Woolworths GroupCEO, Brad Banducci said: the decision to reduce its stake follows a successful transition from ownership to partnership, with the group

“The proceeds will be used for strategic investments and general corporate purposes,” he said.

In October, the group – which owns Dan Murphy’s, BWS and 344 hotels and clubs – reported sales grew 3.1 per cent to $3.02 billion for the 14 weeks to October 2.

It said sales across its retail and hospitality businesses were booming during the quarter as the business cycled the impact of Covid-related disruptions.

Banducci said Woolworths had no intention of reducing its stake further “in the short to medium term”.