MSM
MSM
Massmart Holdings Limited - Disposal of Furnex
Massmart Holdings Limited
("Massmart" or "the company")
(Incorporated in the Republic of South Africa)
(Registration Number: 1940/014066/05)
Share code: MSM
ISIN: ZAE000029534
Disposal of Furnex
Subject to the approval of the Competition Authorities, which is expected before
the beginning of June 2006, Massmart has agreed to sell its 100% shareholding in
Furnex Stores (Pty) Limited ("Furnex"). The consideration, payable in cash, was
at a premium to net asset value and included terms and conditions usual in a
transaction of this nature.
Furnex, part of the Masscash division of Massmart, is a voluntary buying
association serving independent furniture and appliance outlets in South Africa.
The reason for the disposal is that the ongoing success and roll-out of the
smaller-format Game stores in South Africa"s regional and outlying towns meant
that Game was increasingly competing with Furnex"s customers in those towns.
Following several approaches from interested parties wishing to acquire Furnex,
Massmart agreed to enter into negotiations with the buyer that would provide the
greatest degree of employment certainty for Furnex employees, as well as to
serve the best interests of Furnex customers.
The disposal will not have a material effect on Massmart"s earnings or headline
earnings per share, or on its financial position.
Johannesburg
06 February 2006
Sponsor:
Deutsche Securities (SA) (Pty) Ltd
Date: 06/02/2006 11:10:02 AM Produced by the JSE SENS Department
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