Massmart traded around R120 per share on Thursday afternoon, up 35% on its closing price of 8 930c on February 12.
However, both Massmart and Wal-Mart have refused to deny or confirm whether a deal is under discussion.
Wal-Mart is believed to be looking at entering African markets, with South Africa identified as the entry point. But because of the difficulties of setting up a new business from scratch, Wal-Mart is understood to be seeking an existing retail chain.
Asked whether it would clarify its position through a statement to the JSE, Massmart said it was not prepared to comment on market speculation.
“Massmart is aware of its responsibilities as a JSE-listed company and is committed to acting in accordance with JSE rules,” the company said.
Absa Investments analyst Chris Gilmour agreed. “As long as it is just rumour and speculation (which it currently appears to be), the company has no duty whatsoever to confirm or deny any speculation surrounding any potential suitor.
“Only if and when negotiations begin in earnest would Massmart be obliged to put out a Stock Exchange News Service (Sens) announcement.”
- Fin24.com