BENTONVILLE, Ark. Wal-Mart Stores announced that it has offered to acquire 51% of the shares of Massmart Holdings Limited for ZAR148 or ($20.69USD) per Massmart ordinary share. Massmart will continue to trade on the JSE Limited to provide Massmart shareholders with the ability to participate in the growth opportunity of the combined entity.
Doug McMillon, president and CEO of Walmart International, said, "We continue to be excited by the opportunity to invest in Massmart's business and to accelerate its growth and expansion in South Africa. The more we learn about South Africa and the surrounding countries the more we are convinced that this is an important region with attractive growth characteristics. This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns. Also, this acquisition will allow us to bring to South Africa our significant experience in connecting small farmers with Walmart's global supply chain, boosting farmer income as well as helping them improve the quality of their produce. We hope to help South African suppliers grow their businesses, become more efficient, environmentally friendly and ultimately more competitive."
The offer remains subject to acceptance by Massmart's shareholders, as well as certain customary conditions and relevant regulatory approvals in South Africa. The offer documents are expected to be mailed to Massmart's shareholders by Dec. 9.