(Reuters) - Australian retailer Woolworths on Wednesday said it was selling a 5% stake in Endeavour Group ( EDVGF ), which operates liquor stores and pubs, generating proceeds of A$468 million ($302.98 million).

The sale will happen via a block trade at a price of A$5.22 per share, Australia's largest supermarket operator said, adding that it would now own about 4.1% of Endeavour, which it spun out as a separate company in 2021.

Woolworths said it would use the proceeds from the selldown to return capital to its investors and would provide an update at its full-year results on Aug. 28.

"We no longer believe that a material equity investment in Endeavour Group ( EDVGF ) is required," Woolworths' outgoing CEO Brad Banducci said in a statement.

($1 = 1.5446 Australian dollars)