Massmart Holdings Ltd. said Monday that it has reached a principle agreement with Walmart Inc. on the terms of a potential takeover offer by Walmart
which already owns a 51% stake in the group.
The South African retail and wholesale group
said that the deal, which values Massmart at 1.34 billion rand ($79.4 million), is based on a potential offer of ZAR62 for each share in the company.
The share price offer represents a premium of 53% to the company’s closing share price, it added.
“The Massmart independent board… is unanimously of the preliminary view that the terms and conditions of the potential offer are fair and reasonable and intends to recommend to the Massmart board to propose the scheme and support the standby general offer,” the company noted.
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