Woolworths venture capital arm W23 has sold its 9.9 per cent equity stake in Marley Spoon for $54 million but the five-year strategic growth alliance between the companies remains.
In 2019, Woolworths entered a growth alliance with Marley Spoon to help with marketing support, customer origination programs, logistics cooperation and supply chain operations.
W23 invested close to $30 million in the meal kit company through bonds which had a two-year conversion maturity. After the bonds were converted into 28 million CHESS Depositary Interest’s (CDI’s) which represents 28,000 normal shares, they were sold through the Jardon Group at $1.91 each.
A W23 spokesperson said they were still committed to the five-year alliance.
“W23 invested in Marley Spoon to support their growth as it built its business in Australia and other markets. Marley Spoon experienced strong growth over the term of W23’s investment and has matured into an established listed company, and no longer fits squarely within the investment criteria of W23,” said the spokesperson.
Marley Spoon experienced large growth in the 1Q FY2021 but witnessed a significant 22 per cent drop in share prices in July 21. The company is the second-largest meal kit subscription-based provider in Australia, but as of last month its shares have dipped to its lowest points.
Woolworths non-executive director retires
Michael Ullmer has announced he will retire as a non-executive director at this year’s AGM.
Ullmer is a member of multiple Woolworths committees including: Audit & Finance, Risk, People and Nomination. Woolworths Group chair Gordon Cairns said Ullmer had been “a source of wisdom and sage advice for the board, the executive team and me personally”.
He will be replaced by Philip Cronican, who is currently chair for the National Australia Bank, Westmead Institute for Medical Research and non-executive director of National Foundation for Australia-China Relations.
“I am delighted that the board was able to find an experienced and outstanding candidate in Philip, following the conclusion of a thorough and externally-supported search process,” said Cairns.
Cronican joins the board as non-executive director from 1 October.
