Woolworths has sold its 9.8 per cent stake in New Zealand discount department store chain, The Warehouse Group for $84.2 million

The supermarket giant has agreed to sell its more than 30.5 million Warehouse Group shares to New Zealand private retailer James Pascoe Ltd, for $2.76 per share.

“The directors of Woolworths have determined that the investment in (The Warehouse Group) is no longer required as part of its New Zealand strategy,” Woolworths said.

Woolworths operates 170 supermarkets in NZ under the Countdown, Super Value and Fresh Choice banners.

James Pascoe has increased its stake in The Warehouse Group to 16.2 per cent.

Australian supermarket giant, Woolworths, has sold its 9.8 per cent stake to the company for $87 million, saying its investment in the discount department store chain is “no longer required as part of its New Zealand strategy”.

James Pascoe’s purchase follows on from its acquisition of 305,000 Warehouse Group shares in January.

It first took a 6.3 per cent stake in The Warehouse Group in October 2014. The company said The Warehouse is “another strong New Zealand brand that fits within our philosophy of supporting New Zealand retail”.

James Pascoe owns department store chain Farmers Trading Co, Whitcoulls bookstores, and jewellers including Pascoes, Stewart Dawson, Goldmark, Prouds, and Angus & Coote.

James Pascoe is owned by David and Anne Norman and has gone on the record to say it does not intend to launch a full takeover of The Warehouse.