Wal-Mart has announced it will launch a tender to acquire all the issued and outstanding shares and American Depositary Shares of the Chilean company, Distribución y Servicio D&S S.A.(DYS), giving it a major foothold in the South American country.

“Moving into Chile is an important step in implementing Wal-Mart International’s strategy. We continue to focus on portfolio optimisation, global leverage and winning in every market,” said Michael T. Duke, vice chairman and CEO-elect, Wal-Mart Stores, Inc. “A successful tender offer will give Wal-Mart 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 tomorrow (23 December).  Wal-Mart has set as a minimum condition the acquisition of at least 50.01% of D&S’s fully-diluted common shares. The tender offer price is denominated at US$0.408 per common share.

The Ibañez family, the existing controlling stockholders of D&S, have agreed to tender a portion of their D&S shares and will enter into a long-term stockholders’ agreement with Wal-Mart regarding D&S. The company will continue to operate with its existing leadership, associates and brands.
Craig Herkert, President and CEO, the Americas, Wal-Mart International, said, “This investment demonstrates our deep respect for D&S, which has a long history of providing the best value to Chilean consumers."

Dys owns Hiper Lider, a discount hypermarket with 63 stores in the country with the slogan “all in one place". It also runs 50 Lider Express which have a traditional supermarket format and since, January 2007, the Ekono discount supermarkets of which there are 43 stores. In October 2007, DyS launched a new format,  SuperBodega aCuenta, for lower income families. There are currently five stores of this type and eight more are under construction.

"Both companies also have the same core values and business philosophies: respect for the individual, service to the customer and striving for excellence,” said Herkert.

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