Corporate and Investment

Standard Bank advises Massmart on Walmart securing full ownership of Massmart and its subsequent delisting

22 Nov 2022

South Africa
Business Unit
Advisory Services
Specific Role
Sole financial advisor and transaction sponsor

Standard Bank is proud to announce that it has supported Massmart and American transnational retail corporation Walmart in concluding a R6.4bn transaction to secure full ownership of Massmart.

The bank acted in its capacity as sole financial advisor and transaction sponsor for Massmart, which sold the 47.6% of shares which Walmart did not already own to Walmart. A cash price of R62 per share was proposed through a scheme of arrangement or a general offer, presenting an opportunity for minority shareholders to realise immediate value in an environment where there are no near-term catalysts for a Massmart re-rating. Processes are underway to delist Massmart from the Johannesburg Stock Exchange, and following this, Massmart will be a fully owned Walmart subsidiary.

Standard Bank is honoured to have played a role in this transaction, which represents a sustainable way forward for Massmart, while allowing minority shareholders the opportunity to realise significant immediate value and will go a long way in renewing investor interest and confidence in South Africa. We also recognise that Walmart’s expertise and support unlock significant growth opportunities for Massmart, which in turn has the potential to create jobs and develop local economies across the region.

Read more about this deal.