Detailed cautionary announcement regarding a potential offer by Walmart to acquire all the outstanding shares in Massmart that it does not already own, excluding treasury shares.

Note from The Finance Ghost:

It’s finally happened. Walmart has decided to take Massmart private, enabling the group to execute a turnaround strategy away from the public eye and without the agony of releasing such tough results every six months.

The mechanics of the potential deal are still being finalised and this is not a firm intention announcement. The potential offer price is R62 per share, representing a premium of 53% to the closing share price and a 68.7% premium to the 30-day VWAP.

After injecting R4 billion into Massmart to keep the business afloat during Covid and the riots, it has become clear that this turnaround is far from over.

Refer to the detailed announcement below for the official statement from Walmart and Massmart: