Another thing to keep in mind is Endeavour has demerged from WOW.
Soon as Winedepot gains traction it will become ideal for acquisition by either Metcash, Endeavour or Bevchain. They are probably the only companies that will have the funds or ability to raise funds to acquire DW8.
Endeavour bought a majority stake in Shorty's last year. Shorty's offer traditional delivery & B2B delivery. Endeavour was attracted to them due to their corporate customers. Soon as the Winedepot customer base becomes attractive it's game on. Endeavour is cashed up selling over $100M of ALH hotels this year & leasing them back.
Based on DW8 revenue of circa $25-30M in 12 months x 25 multiple = $625-$750M MC + $2M cash = $627-$752M MC + 50% premium for takeover = $940.5-$1,128M MC. Using $1B round numbers / 1.9B shares on issue = about 52c SP.
DT sold out to Cellarmasters in the past. Endeavour owns Cellarmasters. The clock is ticking.
Here is an article from early 2020.
Woolworths polishes Endeavour offering with liquor delivery stake
Supermarket giant Woolworths has bought a majority stake in Sydney-based liquor seller Shorty's in an effort to bolster its $10 billion Endeavour Drinks division before a planned spin-off later this year.
Endeavour chief executive Steve Donohue said the acquisition would develop "new growth avenues" for the beverage unit which owns bottle shops BWS and Dan Murphy's as well as hundreds of pubs and pokie operators.
Shorty's, founded in 2001 by entrepreneur David Short, offers both business-to-business and traditional liquor delivery across Sydney. But it was the company's corporate customers that attracted Woolworths' interest.
The company's client list includes prominent financial services, legal and advertising businesses in Sydney, and Mr Donohue said the retailer would be looking to establish a "bigger presence" in the business to business market.
Credit Suisse analyst Grant Saligari said the acquisition was an indication of Endeavour’s soon-to-be independence, with the business aligning itself for growth as an independent entity.
"This highlights Endeavour’s opportunities to explore other growth avenues for the business, such as moving into business-to-business through this acquisition," he said.
Looking at Endeavour’s strategy after its eventual spin-off, Mr Saligari said investments such as Shorty’s acquisition may be more likely, forecasting a better return on capital for the liquor division over the company’s hotels arm.
"Investment in hotels is a bit more selective and sporadic, whereas there’s more support for growth in liquor for areas such as online and business-to-business."
In December, Woolworthsshareholders voted overwhelmingly in favourof 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 serviceJimmy 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.
It will also add to the swathe of other complementary operations under the Endeavour umbrella, including brewer and bottler Pinnacle Drinks, online wine retailer Cellarmasters, and liquor auction site Langton's.
Extracting its pokies division may be a timely move for Woolworths, as the nation's anti-money-laundering regulator, AUSTRAC,appears to be upping its scrutiny of the gambling sector.
The regulator has flagged it may look into the potential "gaps" in what it expects casinos to know about its gaming customers, a change which would affect Woolworths which owns some 12,000 machines through its ALH joint venture.
However, chief executive Brad Banducci haspreviously downplayed the benefitsof spinning off its pokies division, saying instead the move was about creating better growth prospects for the company's liquor division.
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 price Woolworths paid for the majority stake was not disclosed.
"We’ll benefit greatly from tapping into Endeavour’s national supply chain, while also retaining our agility as a distinct business within the group," Mr Short said.
(20min delay)