Dec. 19, 2008 – WalMart Stores, will launch a tender offer to acquire all of the issued and outstanding shares and American Depositary Shares of Distribución y Servicio D&S S.A.(DYS).
The tender offer price is denominated at US$0.408 per common share. This offer price represents a premium of approximately 37.4 percent over the average closing price for the prior 30 trading days.
“Moving into Chile is an important step in implementing WalMart International’s strategy. We continue to focus on portfolio optimization, global leverage and winning in every market,” said Michael T. Duke, vice chairman, WalMart Stores, Inc. “A successful tender offer will give WalMart the opportunity to be a significant participant in Chile, which continues to have a strong and growing economy among South America countries.”
The tender offer is expected to commence Dec. 23, 2008 in the United States and Chile. WalMart has set as a minimum condition of the tender offer, the acquisition of at least 50.01% of D&S’s fully-diluted common shares. In order to demonstrate their support for the offer, the Ibañez family, the existing controlling stockholders of D&S, have agreed to tender a portion of their D&S shares. These controlling shareholders will enter into a long-term stockholders’ agreement with WalMart regarding D&S, which will continue to operate with its existing leadership, associates and brands.
According to Craig Herkert, President and CEO, the Americas, WalMart International, “This investment demonstrates our deep respect for D&S, which has a long history of providing the best value to Chilean consumers. We share a laser focus on price leadership just as we do in WalMart’s 10 retail markets throughout the Americas. Both companies also have the same core values and business philosophies: respect for the individual, service to the customer and striving for excellence.”
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