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Wal-Mart Stores, Inc. (WMT)

(3-28-08) Your friendly neighborhood superpower. Wal-Mart Stores, Inc. (WMT)

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Wal-Mart Completes Investment In Massmart, Names 3 Board Members

Wal-Mart Stores, Inc. (NYSE:WMT) announced today the completion of its investment of a 51% stake in South African Massmart Holdings Limited.

Doug McMillon, president and CEO of Walmart International, said, "With the closing of our investment in Massmart, we are very excited about our entry into South Africa as well as the broader African continent. As we do in all of our other markets, we will work to serve underserved customers, to help people save money to live better. Just as important, we will grow in this part of the world, and as we do, we expect to create many jobs and support local suppliers. We have a global track record of working directly with small farmers, boosting their income and helping them become more sustainable, and we look forward to bringing those practices to South Africa."

Masmart will continue to be publicly trades on the Johannesburg Stock Exchange. In the terms of the agreement, Wal-Mart is entitled to nominate the chairman and three non-executive directors to the Massmart board. Wal-Mart has asked current Massmart chairman Mark Lamberti to remain in his position as chairman, while nominating Walmart executives Doug McMillon, Jeff Davis, senior vice president, Finance & Treasury, and JP Suarez, senior vice president, Walmart International Business Development to fill the three board positions.

Wal-Mart Stores has a potential upside of 17.3% based on a current price of $52.77 and an average consensus analyst price target of $61.89.

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