Pick n Pay has announced that its largest shareholder, the Ackerman family via Ackerman Investment Holdings, will sell down up to 8.5% of its stake in the retailer.
It says this is necessary as the family “wishes to settle the third-party funding raised to support Pick n Pay’s restructuring and recapitalisation, together with the associated professional fees and other costs, including 16 months of servicing that funding”.
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% oversubscribed.
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.”
If it disposes of the full 8.5% stake, the family will see its voting interest (via B shares) decline from 49% to not less than 36.8%. Its economic interest will decrease from 26.7% to not less than 18.2%.
The family has agreed to not sell any more shares for 90 days after this transaction.
Pick n Pay and Boxer share prices over the past year.
