BENTONVILLE, Ark. — Walmart will acquire the outstanding shares of Massmart for an estimated $377.6 million, the company announced Monday (Aug. 29). The Bentonville-based retailer already owned 51% of the large Africa retailer. The original Massmart investment cost Walmart $2.3 billion in 2011.
The offer Walmart made for Massmart is 62 rand per share which is equal to about $3.68 per share. The offer represents almost a 53% premium to the share value as of Friday’s (Aug. 26) closing price, according to analysts. Walmart said it plans to delist Massmart from the Johannesburg Stock Exchange if the deal is approved.
Walmart also announced a new management change for Massmart at the end of December when CEO Mitch Slape left the company. Slape has run Massmart since 2019. Walmart said Slape’s departure is not related to the ongoing acquisition. Massmart’s Chief Operating Officer Jonathan Molapo will be the CEO and Slape will serve as a consultant through the transition.
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