Why US giant Walmart wants all of SA Massmart at R62 a share

American giant retailer Walmart has proposed buying the remaining shares it does not own in Massmart for R62 a share. 

Walmart bought the initial 51% stake in 2011 at R148 per share. 

If the deal was successful, Massmart would be delisted from the Johannesburg Stock Exchange. 

Keith McLachlan, investment officer at Integral Asset Management, said the turnaround of Massmart might find success if the company was unlisted. 

“[Massmart] would be in the unlisted space which will make it far more flexible. There is less legislation, regulation and compliance. There are fewer reporting requirements, allowing Massmart to be more agile, and that’s important – this is a big ship to turn around,” McLachlan said. 

The value of Massmart has slumped by 80% since Walmart bought into it, as the retailer struggled to remain relevant in a weak economy.

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The post Why US giant Walmart wants all of SA Massmart at R62 a share appeared first on The Mail & Guardian.

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