Woolworths and its US home improvement partner Lowe’s have tipped another AUD105 million (USD77.3m) into their loss-making joint venture only weeks before Lowe’s is eligible to exercise its right to sell its 33 percent stake.
According to documents lodged with the Australian Securities and Investments Commission last week, Woolworths injected another AUD70 million and Lowe’s another AUD35 million into their joint venture vehicle, Hydrox Holdings, on September 30.
The capital injection, the fifth this year, took the total value of their investment to AUD3.32 billion. It suggests that the Masters big-box home improvement chain is still losing money, even though a new store format is said to be delivering encouraging sales growth.
(Source: The Sydney Morning Herald Online )