Walmart has offered to buy the remaining 47% stake in South African retailer Massmart for ZAR 6.4 billion (approx. $379 million).
Massmart is a South African company that owns various brands, including food and liquor wholesaler Makro.
The amount of the offer is equivalent to a premium of 53% to the closing share price on 26 August 2022. Massmart says that if finalised, the deal would provide ongoing financial and operational support for the business’s turnaround, which has been hindered by external factors, such as Covid-related restrictions on trading, civil unrest in KwaZulu-Natal and a challenging economic environment.
Walmart originally acquired a 51% stake in the retailer in 2010, but Massmart has faced a number of challenges over recent years, according to Reuters.
Massmart’s chairman, Kuseni Dlamini, commented that the terms and conditions of the offer are “fair and reasonable”.
Additionally, Massmart has announced that its chief operating officer, Jonathan Molapo, has been promoted to CEO. He will succeed Mitchell Slape, who will step down from the role on 31 December 2022.
Walmart plans to de-list Massmart post-deal.
© FoodBev Media Ltd 2022
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