Wal-Mart Shifts to Partial Buy of Massmart
Wal-Mart (NYSE:WMT) may be shifting its strategy regarding Massmart. Instead of a full buyout, they have opted for partial bid on the company’s stock.
Wal-Mart Stores Inc., which has made a non-binding offer for South African retailer Massmart Holdings for 148 rand (or about $21.24) a share, may decide to acquire a partial stake instead, Massmart said Thursday. After consulting with major Massmart shareholders and key South African stakeholders, Wal-Mart is investigating potential options for and the merits of retaining Massmart's listing on the country's exchange, the Johannesburg-based company said, adding Wal-Mart could instead make a partial offer to acquire a stake in excess of 50% at the original per-share price offer. Wal-Mart's original proposed offer to buy Massmart for $4.26 billion at the time of the announcement, if it proceeds, would mark its biggest deal in more than 10 years. Wal-Mart shares fell 0.5%. Massmart shares were up 1% in Johannesburg trading. – Marketwatch
WMT shares are trading at $53.76, down -0.59% or $-0.32 and volume is currently at 2.16M shares traded. Over the past 12 months Wal-Mart Stores Inc (WMT) shares have traded between a 52-week low of $47.77 and its 52-week high of $56.27. Wal Mart Stores Inc shares are currently trading with a P/E Ratio of 13.8 and EPS of 3.89.