Wal-Mart Announces Tender Offer for Full Ownership of Seiyu, Its Japanese Subsidiary
BENTONVILLE, Ark. and TOKYO, Oct. 22 - So, It,s now confirm that Wal-Mart is leaving Japan. According to a statement today make by Wal-Mart Stores, Inc., ("Wal-Mart") (NYSE: WMT) says, it will launch a tender offer to acquire all of the issued and outstanding shares of its Japanese subsidiary, The Seiyu, Ltd. ("Seiyu") (TSE: 8268), that it does not already own. The offer is being made with the endorsement of the Seiyu Board of Directors, which today 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. Following a successful tender offer, Wal-Mart
intends to take additional steps to acquire all of the remaining shares,
which would result in the delisting of Seiyu shares from the Tokyo Stock
Exchange.
Seiyu and Wal-Mart entered into an alliance in May 2002. Wal-Mart
became the majority owner of Seiyu at the end of 2005, and has since
committed substantial resources with the aim of improving Seiyu's corporate
value.
Both Seiyu and Wal-Mart now believe that it is in both companies' best
interests for Seiyu to become a wholly-owned subsidiary of Wal-Mart, to
ensure that Seiyu can benefit most fully from Wal-Mart's support.
"As a wholly-owned subsidiary, Seiyu will have increased flexibility to
invest in merchandising, store renovation, distribution and logistics,"
said Duke. "Our Japanese associates will benefit from these steps to
enhance the company's performance. In addition, this provides reassurance
to our business partners and increases confidence in Seiyu's strength and
future prospects.
Duke added, "Wal-Mart's mission of saving people money so they can live
better means that Seiyu can leverage Wal-Mart's global ability to offer
great value and pass those benefits on to our customers in Japan."
note---You can only laugh on these claims....
