By Zuko Komisa
US Retail giant Walmart, which is currently a majority shareholder in Massmart, has proposed a R 6,4 billion deal to acquire the remaining shares of the SA-based retailer.
Massmart owns stores such as Makro, Fruitspot, Builders, Cambridge, Dionwired, GAME, and Jumbo Cash and Carry.
Massmart is a well-known and distinctive African retail and wholesale organization with 403 locations across 13 sub-Saharan nations.
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Kaya Biz with Gugulethu Mfuphi spoke to Kuseni Dlamini – Massmart Group Chairperson about the proposed deal.
LISTEN TO THE FULL CONVERSATION HERE:
Dlamini says they have set up an independent board to look at this term and conditions carefully
In 2011, Walmart made its initial investment by acquiring a 51% holding for R148 per share, more than twice what it is now supplying.
Given that Walmart is already the majority shareholder, according to Dlamini, the acquisition is not subject to approval by the Competition Commission. He also notes that it is a significant vote of confidence in the South African economy that should encourage additional foreign investment.
“The journey begins in 2010, and Walmart has a track record of operating in the South African market for 12 years. and have built a solid knowledge base. It is really encouraging indeed to know that they have taken a decision to increase their stake to 100%. It is an incredible vote of confidence on South Africa and Africa at large.”
It is something the board of Massmart has looked at carefully, and we have set up an independent board to look at the terms and conditions of this potential offer.”
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