no share overhang
What are the chances of Walmart exiting Africa?
For all its slower-than-expected growth, Walmart’s African operation has been reliably profitable and has more than doubled turnover — and Massmart’s had no indication that it wants to pare down
Since Doug McMillon was appointed CEO of Walmart in 2014, the world’s largest retailer has retreated from several key markets. Last month, notably, it effectively withdrew from Brazil. So what are the chances of the company retreating from its investment in Massmart? And is the suspicion justified that McMillon might be the cause of Massmart’s recent lacklustre share-price performance? One of the problems with share overhangs (when investors balk at buying shares because of the stock’s downtrend) is that they tend to be, by definition, based on supposition and speculation. Walmart hasn’t discussed publicly whether it intends selling its stake in Massmart, and would obviously never do so. When asked directly, a Walmart spokesperson said: "We remain committed to investment in Africa and are well-positioned to foster development and growth in the region through investments, distribution supply chains, agriculture, technology and job creation." The argument in favour of a sale is based ...
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