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If Walmart sells Massmart stake, who has the money to buy it?

| Wine and liquor

As speculation gains traction that Walmart is selling off its anchor shareholding in African partner Massmart, industry pundits are concerned that finding an investor with enough funds to take over may prove difficult.

At Walmart’s AGM in Fayetteville, Arkansas, this week, shareholders in the world’s largest retailer may stew over the health of the US economy, the technology threats posed by online giants such as Amazon, and its African investment — which, after five years, is struggling to maintain momentum.

When Walmart bought a majority shareholding in Massmart, the owner of Makro and Game was trading at R148, costing the US retailer $2.5bn.

Now the stock is trading about 23% lower since the deal was approved by antitrust authorities in March 2012.

In January this year, the share was trading as low as R83.20 — a 48% decline in value since the takeover.

Read the rest of the article on Sunday Times.

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