| Mon 19 Jan 2004, 9:18 | | Sale of SHV"s stake in Massmart |
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MASSMART HOLDINGS LIMITED - Sale of SHV"s stake in Massmart
MASSMART HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1940/014066/06)
Share code MSM ISIN ZAE000029534
("Massmart")
Potential sale of SHV"s stake in Massmart
Pursuant to a recent strategic review, SHV Holdings N.V. ("SHV"), a 30.9%
shareholder in Massmart, has decided to enhance its investment and managerial
focus on its core businesses comprising 140 Makro wholesale cash and carry
outlets in South America and Asia and in liquid petroleum gas distribution in
South America, Europe and Asia, and in doing so divest from minority holdings.
Arising from this, SHV Holdings N.V. has decided to divest of its interest in
Massmart through a bookbuilding procedure to be implemented by UBS commencing
today and expected to close on or before the close of business on Thursday, 22
January 2004.
Commenting on the transaction, Mark Lamberti, Chief Executive and Deputy
Chairman of Massmart said, "Since 1994 when SHV reinvested in South Africa, we
have enjoyed a supportive and mutually beneficial relationship. This spanned
Massmart"s listing on the JSE Securities Exchange, the unbundling of the Wooltru
Group and the various acquisitions that have enabled Massmart to achieve
industry prominence in the South African retail sector. While we respect SHV"s
strategic decision and will miss the relationship at shareholder level, this
represents an opportunity to improve the free float and liquidity of Massmart
shares, answering the demand of institutional shareholders since listing. We are
also pleased that there will be a continued exchange of benchmark and operating
practices between the two groups".
SHV Executive Board Chairman, Piet Klaver, commented, "Over the years,
Massmart"s management has delivered strong and sustained growth and in
particular has been able to develop a coherent retail and wholesale portfolio
under its channel and chain strategy. SHV remains fully supportive of Massmart"s
ambition to continue to incorporate new retail formats in its portfolio thereby
supplementing its organic growth profile. SHV wishes to thank the board and
employees of Massmart for their success in building the company and for the
results achieved. SHV also wishes the company and all its shareholders every
success in the future.
Shareholders are reminded of the recent Massmart sales update for the 26 weeks
to 28 December 2003 dated 8 January 2004 which stated:
"For the 26 weeks to 28 December 2003, Massmart"s total sales including
acquisitions grew 15,6% to R12,2bn. Sales growth excluding acquisitions was
11,1% and comparable store sales grew 8,4%. Acquisitions, comprising Builders
Warehouse, Tile Warehouse, and seven cash & carry outlets contributed sales of
R483m.
Massmart"s weighted-average sales inflation for the 26 weeks was estimated to be
zero percent across all merchandise categories, with deflation being experienced
in general merchandise for most of the period.
Despite this, the inclusion of Builders Warehouse and Tile Warehouse for the
first time and good growth in Makro, Furnex and Game South Africa resulted in
general merchandise sales growth double that of food, which experienced high
inflation in the comparable period last year. Due to the stronger Rand,
Massdiscounters" foreign Game stores sales in Rands were below those for the
comparable period last year."
Sandton
19 January 2004
Date: 19/01/2004 08:55:02 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
