Woolworths' pubs and liquor stores business Endeavour will debut on the ASX in the next couple of weeks after shareholders approved a demerger.
Woolworths shareholders on Friday voted to demerge Endeavour, which owns BWS and Dan Murphy's, as well as hotels.
Fund managers and clients have become more conscious of the social impacts of their investments, and are cautious about backing alcohol and gaming.
The demerger would reduce the retail giant's exposure to these concerns, ratings agency S&P Global said.
In April, Woolworths abandoned plans for a Dan Murphy's shop in Darwin after Indigenous communities protested the development on health concerns.
Endeavour will start trading on the ASX on June 24 on a deferred settlement basis. Regular trading of shares will begin on July 1.
Chairman Gordon Cairns said he expected Woolworths would remain one of the 20 largest companies on the ASX.
Woolworths will retain a 14.6 per cent stake in the company.
Woolworths shares were lower by 0.92 per cent to $42.95 at 1500 AEST.
