Woolworths Group has agreed to sell 5 per cent of its one-time subsidiary Endeavour Group for $468 million.

The deal will reduce Woolworths’ stake in the hotels, alcohol and gaming facilities operator to just 4.1 per cent.

While Woolworths CEO Brad Banducci acknowledged the importance of the supermarket chain with Endeavour Group, he said that “we no longer believe that a material equity investment in Endeavour Group is required as Endeavour Group approaches its three-year anniversary as an independent listed company”.

“We currently have no intention to sell the remaining stake, but will continue to assess what we believe is in the best interests of Woolworths Group shareholders.”

The supermarket chain said it will use the proceeds to return capital to shareholders.

In 2022, Woolworths sold a 5.5 per cent stake in Endeavour for $636 million.