In December, Woolworths shareholders voted overwhelmingly in favour of the Endeavour Group’s restructure, a key step in a complex process which consolidated Woolworths’ drinks, hotels and pokies businesses under a separate internal entity.
Woolworths, through Endeavour, already owns consumer-focused liquor delivery service Jimmy Brings, and the acquisition of Shorty’s will help the company round out its delivery offerings ahead of the demerger of Endeavour Group later this year.
The retailer plans to separate Endeavour, likely through an ASX listing, at some point in calendar 2020. Investors reacted positively, believing it will remove the “conglomerate discount” from Woolworths’ share price, along with limiting the company’s involvement with the problematic gaming sector.
Shorty’s will continue to be run by Mr Short and will look to expand into Melbourne, Brisbane and other capitals in the coming years. The majority stake’s price was not disclosed.