Move reaffirms Wal-Mart commitment to Japanese market
22 Oct '07
3 min read
Wal-Mart Stores Inc announced it will launch a tender offer to acquire all of the issued and outstanding shares of its Japanese subsidiary, The Seiyu Ltd that it does not already own.
The offer is being made with the endorsement of the Seiyu Board of Directors, which passed a resolution of support.
The tender offer price is 140 yen per common share. This represents a premium of 60.9% over the closing price on the Tokyo Stock Exchange on October 19, and a premium of 34.6% over the average closing price for the prior three months.
Wal-Mart currently owns 50.9% of Seiyu. The tender offer represents an additional investment by Wal-Mart of up to 100 billion yen (approximately $862 million).
"Today's announcement is a reaffirmation of our commitment to Japan, the second largest economy in the world," said Mike Duke, Vice Chairman of Wal- Mart Stores Inc.
"The Japanese retail market is of major strategic importance to Wal-Mart, and our goal is to achieve long-term success and growth in Japan."
"Full ownership by Wal-Mart is the best way for Seiyu and Wal-Mart to accelerate the delivery of long-term benefits to our customers, the communities we serve, our associates and our business partners," explained Duke.
The tender offer will commence on October 23, 2007 and will be open for 30 business days, closing on December 4, 2007. Wal-Mart's minimum objective through the tender offer is to achieve ownership of at least two thirds of Seiyu's common shares.
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