Walmart-owned Massmart says it has disposed of some of its stores namely, Cambridge Food, Rhino, and Massfresh to Shoprite for a total consideration of R1.360 billion.
Shoprite is buying Cambridge Food business and Rhino Cash and Carry business (56 grocery stores, including 43 adjacent liquor stores); the Fruitspot business and Massfresh Meat business (four facilities); and 12 Masscash Cash and Carry stores.
In a statement on last Friday, Massmart, which also owns Game and Makro, said the transaction remains subject to the relevant regulatory approvals.
Massmart said it will use the financial proceeds from the sale to pay down debt, invest in eCommerce, and expand its general merchandise, DIY and wholesale food and liquor businesses.
Mitch Slape, Massmart Group CEO, said: “The sale marks another step in the group’s portfolio optimisation process and will, amongst other benefits, free up management time to enable increased focus on leveraging Massmart’s core merchandise and market strengths.”
In addition, Slape said affected staff members will continue to be employed by the new owner on terms and conditions that are, on the whole, not less favourable than their existing employment contracts.