Woolworths – Demerger

Posted on | by Leon Hinde

WOW:ASX is under Algo Engine buy conditions and is a current holding on our ASX model portfolio.

Post demerger Endeavour Drinks will own the largest network of retail alcohol stores in Australia with 1,630 stores. It will also have 332 hotels and 12,400 electronic gaming machines across 1,775 liquor licences.

Endeavour operates across two divisions, Retail and Hotels. Forcast FY22 revenue is likely to be around $10.5bn and EBIT $700m.

WOW shareholders will receive one new Endeavour Group share for every WOW share held at the demerger record date (25-June). Post the demerger WOW will likely consider the potential for capital management of $1.6bn-$2bn.

Woolworths – Buy

Posted on | by Leon Hinde | Leave a Comment on Woolworths – Buy

WOW:ASX is under Algo Engine buy conditions and is a current holding in our ASX model portfolios. 

Woolworths’ Chief Executive, Brad Banducci said the retailer remained committed to the $10bn spin-off and possible demerger of its liquor and hotels business, Endeavour Group.

The higher low at $38.30 will likely result in increased buying support and the demerger will remain an attractive bonus for shareholders. 

Woolworths – Buy

Posted on | by Leon Hinde | Leave a Comment on Woolworths – Buy

WOW:ASX is under Algo Engine buy conditions and is a current holding in our ASX model portfolios. 

Woolworths’ Chief Executive, Brad Banducci said the retailer remained committed to the $10bn spin-off and possible demerger of its liquor and hotels business, Endeavour Group.

The higher low at $38.30 has resulted in increased buying support and the demerger will remain an attractive bonus for shareholders.