U.S retail giant Walmart Inc has launched a 6.4 billion rand offer for the 47% of Massmart shares it does not already own, a deal Massmart says would support the overhaul of the loss-making South African retailer.
Massmart’s announcement of the offer sent its shares up 46%. If approved by shareholders, the retailer would be delisted from the Johannesburg Stock Exchange.
Massmart added that Walmart has offered 62 rands for each outstanding Massmart share, which represents a premium of 53% to Friday’s closing share price.
Massmart Chairman Kuseni Dlamini says that a preliminary report from an independent expert indicates that the terms and conditions of the offer are fair and reasonable.