Massmart today (22 Jan 04) announced that 61 438 624 Massmart shares owned by SHV Holdings N V, representing 30.9% of the company, were sold to a broad spread of local and international investors, by way of an accelerated book-building process. The R1.6bn transaction was substantially oversubscribed with strong demand generated from leading institutions in South Africa, Europe and North America. The sale was concluded at a price of R25.75 per share, 5.7% below the closing Massmart share price on the JSE on 16 Jan 04, the business day prior to the announcement of the sale. The transaction will result in a significant expansion of Massmart's share register with approximately half the shares placed with institutions outside South Africa.
Pursuant to the sale of these shares, Messrs Mavuso Msimang, Folkert Schukken, and Derk Doijer (alternate to Mr Schukken), all SHV appointees, have resigned from the Massmart board.
SHV has donated USD0.5m to a cause of Massmart's choosing. The directors of Massmart have decided to use this money to establish a trust to be called the Massmart Education Foundation, the proceeds and capital of which will be directed solely to the education of underprivileged South African citizens, consistent with the objectives of Black Economic Empowerment
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