By Lehlohonolo Lehana.
South African grocery retail chain Pick n Pay has announced its largest shareholder, the Ackerman family will sell down up to 8.5% of its stake in the retailer.
This sale will decrease the family’s voting rights and economic stake in the retail giant, which Raymond Ackerman founded in 1967.
This comes after the family provided significant support to Pick n Pay at the start of its turnaround plan in 2024, which included a highly successful rights offer.
The family supported the turnaround of Pick n Pay in 2024 by providing R1.1 billion in equity support during its two-step recapitalisation programme. The retailer raised R4 billion in capital with a rights offer last year, which was more than 100% oversubs.
The second leg of this plan was the listing of its Boxer unit on the JSE.In disposing of a stake in this business, it raised an additional R8.5 billion.
The Ackermans will dispose of up to just more than 64 million ordinary shares in Pick n Pay. At current market prices (around R27 a share), this stake is valued at R1.7 billion.
The group says “the Ackerman Family remains fully committed to Pick n Pay, to [CEO] Sean Summers and his leadership team and to the company’s turnaround plan and growth strategy”.
“The Ackerman Family will continue to be an anchor shareholder and long-term investor in Pick n Pay.”
It added that the family has agreed to a “lock up” for a period of 90 days, i.e. they agreed not to sell any more shares for 90 days after this transaction is complete.
Pick n Pay explained that the placement is being made to qualifying investors only and is not an offer to the public in South Africa or in any other jurisdiction.