Federal Court approves Woolworths restructure
The Federal Court has approved Woolworths’ proposed restructure meaning the group will now demerge its drinks and hospitality businesses to create Endeavour Group.
The approval comes after Woolworths shareholders overwhelmingly voted in favour of the proposal earlier this week. Over 99.5 per cent of shareholders backed the move.
In a statement to the ASX Woolworths said: “Woolworths Group Limited (Woolworths Group) advises that the Federal Court today approved the Restructure Scheme to combine Woolworths Group’s drinks and hospitality businesses to create Endeavour Group.
“Woolworths Group intends to implement the Restructure Scheme on 2 February 2020, and to then implement the ALH Merger to combine Endeavour Group with Bruce Mathieson Group’s interests in ALH on 4 February 2020.”
Woolworths first revealed details of its intention to spin-off EDG and ALH in July, with Chairman Gordon Cairns saying: “The Board believes that a merger of Endeavour Drinks and ALH followed by a separation, is in shareholders’ best interests and will benefit customers and team members of both groups.
“The decision has been taken after consideration of the future prospects of both businesses and how they can be best realised. It reflects the Board’s focus on maximising long-term shareholder value.”
Woolworths said that the separation will allow it to “benefit from a simplified organisational structure, a greater focus on its core food and everyday needs markets and opportunities to continue to build out the Woolworths Group retail ecosystem”.