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<\/a><\/p>\nThe stock jumped as much as 45% on the R6.4 billion offer. It was trading 42% higher as of 11:20 a.m. in Johannesburg. That pares its loss for the year to 5.3%.<\/p>\n
Walmart has been exiting low-growth markets and concentrating on partnerships or stakes in local participants. The company has sold Asda in the UK, Seiyu in Japan and its Argentina operations.<\/p>\n
\u201cBasically, all markets outside of the US, they haven\u2019t made an imprint,\u201d Evan Walker, money manager at 36ONE Asset Management Ltd in Johannesburg, said referring to Walmart. \u201cIt\u2019s going to be interesting to see if they come out now very aggressively against other retailers from a buyer perspective.\u201d<\/p>\n
Slape, who has worked for Walmart for 27 years, was sent to arrest a slump in profit at the Johannesburg-based company. Under Slape\u2019s leadership, the company has cut jobs, shut its Dion Wired chain, disposed of underperforming Masscash stores and stopped selling fresh food in household-goods chain Game.<\/p>\n
Still, Game is struggling, even after the broad cost cuts. Slape has also faced a string of difficulties ranging from pandemic-induced supply chain problems to a week of deadly South African riots a year ago.<\/p>\n
Widening Loss<\/strong><\/p>\n Massmart on Monday also reported a first-half net loss of R1.1 billion, widening from a loss of R1.09 billion a year earlier. The company also has R14.9 billion of debt as of Dec. 31, according to data compiled by Bloomberg.<\/p>\n COO Molapo has held various leadership positions in South Africa and internationally and was most recently the CEO of Astron Energy Ltd. His most significant retail experience has been developing retail forecourts at gas stations.<\/p>\n Molapo\u2019s appointment as COO was \u201cfrom the very outset, part of a carefully thought out succession planning process,\u201d Massmart Chairman Kuseni Dlamini said on a briefing with reporters. This followed a local and international search, he said.<\/p>\n Walmart bought a majority stake in Massmart in 2011 for R16.5 billion. The purchase came under scrutiny from competition authorities and Walmart had to make various development commitments in order to get the deal passed. Still, as majority shareholders, Walmart\u2019s new offer won\u2019t be subject to regulatory approvals, Slape said at the same briefing.<\/p>\n Walmart \u201care excited about the future of Africa and the potential that it represents,\u201d Slape said. \u201cThey take a long-term view, they\u2019re a long-term holder.\u201d<\/p>\n
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