Aug 24 (Reuters) - Woolworths Ltd (WOW) : Woolworths update on...

Aug 24 (Reuters) - Woolworths Ltd (WOW) :

• Woolworths update on Home Improvement Exit
• Has agreed three separate contracts to facilitate its exit from Home Improvement for estimated gross proceeds of $1.5 billion
• Masters will cease trading at all stores on or before 11 December 2016
• Transaction approved by Lowe's and Hydrox Holdings Pty Ltd (Hydrox), the joint venture company owned by Woolworths and Wdr Delaware Corporation (WDR)
• After estimated winddown costs, expects to receive proceeds of about $500 million prior to any shareholder payments
• Citi is acting as financial advisor to Woolworths
• Will work to find staff affected by these closures, jobs within the group and offer full redundancy where jobs are not available within the group
• Will begin discussions with masters' suppliers immediately about the transition timetable
• Metcash has indicated that it intends to exit two companyowned stores (Gungahlin And Launceston (Dowling St)) and one distribution centre (South Dandenong)
• Agreed three transactions to sell Home Improvement Business Hydrox to collective bidder group of GA Australia, Metcash & Home Consortium