Johannesburg – JSE-listed retailer Massmart Holdings [JSE:MSM] said it had received a non-binding proposal from global retailer Walmart Stores to buy its entire issued share capital. The bid is priced at R148 per Massmart share, equal to R29.7bn, a 10% premium to Massmart’s current market valuation of R26.9bn.
The announcement ended a year of speculation since news first broke Walmart was shopping around, particular targeting Massmart for acquisition.
Massmart – the owner of Game, Dion Wired, Builders Warehouse and others – said in the event that a firm offer is received the board of directors of Massmart will obtain an independent opinion and express a view on the offer to shareholders.
The proposed offer is subject to a number of pre-conditions including, due diligence, which will commence immediately. In order to satisfy these pre-conditions, a period of exclusivity has been granted by Massmart to Walmart.
A reciprocal period of exclusivity has been granted by Walmart to Massmart.
“Shareholders are advised that there can be no certainty that these discussions will lead to a formal offer being made,” the company said.
Doug McMillon, president and CEO of Walmart International, said: “Walmart’s mission is to save people money so that they can live better lives. We believe this proposed acquisition is a great opportunity to deliver on that mission for all the people in the regions of the African continent where Massmart currently operates.”
“We have the opportunity to leverage our experience from around the world to more effectively serve customers, create opportunities for our associates and add shareholder value. We are continuing to deploy our strategy to accelerate growth and improve returns in our international business and this region of the world fits with our focus on large, high growth markets.
"This potential combination with a market leader will enable us to add value to an already successful business through investments in people and technology. We respect and honour pre-existing union relationships and are committed to abiding by South African labour laws. We also look forward to serving communities and working with the leaders to support the continued development and momentum in the regions.”
Massmart said shareholders will be updated at the time of renewal of the cautionary announcement, as required in terms of the JSE regulations, which will be on November 8 2010.
- Fin24.com
The announcement ended a year of speculation since news first broke Walmart was shopping around, particular targeting Massmart for acquisition.
Massmart – the owner of Game, Dion Wired, Builders Warehouse and others – said in the event that a firm offer is received the board of directors of Massmart will obtain an independent opinion and express a view on the offer to shareholders.
The proposed offer is subject to a number of pre-conditions including, due diligence, which will commence immediately. In order to satisfy these pre-conditions, a period of exclusivity has been granted by Massmart to Walmart.
A reciprocal period of exclusivity has been granted by Walmart to Massmart.
“Shareholders are advised that there can be no certainty that these discussions will lead to a formal offer being made,” the company said.
Doug McMillon, president and CEO of Walmart International, said: “Walmart’s mission is to save people money so that they can live better lives. We believe this proposed acquisition is a great opportunity to deliver on that mission for all the people in the regions of the African continent where Massmart currently operates.”
“We have the opportunity to leverage our experience from around the world to more effectively serve customers, create opportunities for our associates and add shareholder value. We are continuing to deploy our strategy to accelerate growth and improve returns in our international business and this region of the world fits with our focus on large, high growth markets.
"This potential combination with a market leader will enable us to add value to an already successful business through investments in people and technology. We respect and honour pre-existing union relationships and are committed to abiding by South African labour laws. We also look forward to serving communities and working with the leaders to support the continued development and momentum in the regions.”
Massmart said shareholders will be updated at the time of renewal of the cautionary announcement, as required in terms of the JSE regulations, which will be on November 8 2010.
- Fin24.com