Woolworths Ltd. said April 21 that an award has been made in its confidential arbitration with Lowe's Cos. Inc. regarding their intention to exit their home improvement joint venture, Hydrox Holdings Pty Ltd.
Lowe's is now required to sell its shares in Hydrox for a value an independent third-party expert determined as at Jan. 18, 2016, Woolworths said.
The value of the 33% stake held by Lowe's in the joint venture had been in dispute between the two companies, resulting in the arbitration.
As a result of the award, Woolworths will be able to sell Hydrox to private equity group Home Consortium without the consent of Lowe's once the final valuation and share transfer purchases are done.
Home Consortium in August 2016 proposed to purchase Hydrox, the holding company for the property and development business and assets of home improvement store Masters.