Wal-Mart Stores Begins Tender Offer For Cifra SA
BENTONVILLE, Ark. (Dow Jones)--Wal-Mart Stores Inc. (WMT) started a tender offer for certain series A and B shares of Cifra S.A. de C.V., its joint venture partner in Mexico.
In a press release Friday, Wal-Mart said it plans to buy a total of 593,100,000 shares, including 302,500,000 series A common shares and 290,600,000 series B common shares, at $2.03 a share.
The offer expires on Aug. 22, unless extended, the company said.
Wal-Mart said that although the purchase price is stated in U.S. dollars, it will be paid in Mexican pesos.
As reported June 3, Wal-Mart said it plans to make a public offer to buy Cifra series A and B shares at $1.89 to $2.03 a share, or about $1.2 billion. On completion of the tender offer, Wal-Mart will own 12% to 13% of Cifra's shares outstanding at that time. The overall transaction is expected to give Wal-Mart a majority of Cifra's voting stock and an economic interest in the post-merger Cifra equal to its current interest in the joint ventures.
Also, Wal-Mart and Cifra said the agreement calls for Cifra to pay a $300 million dividend to existing shareholders prior to the merger. Then, the joint-venture companies would merge into Cifra, with Wal-Mart getting series A and B common shares in return for its joint-venture interests.
Wal-Mart and Cifra currently operate 145 retail units and restaurants under a 50-50 joint venture.
Cifra also operates 228 retail units and restaurants on its own. |
