South African retailer Pick n Pay’s (PIKJ.J) founding Ackerman family has sold approximately 64 million shares, the company said on Tuesday, more than a year after committing to relinquish control of the struggling grocer.
According to Reuters, the Ackerman family announced in May 2024 that it would give up control of Pick n Pay as part of a broader strategy to curb losses, reduce debt, and regain market share.
Gareth Ackerman, who had been with the company for four decades, said he will retire as chairman after 14 years in the role.
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The placement shares, representing 8.5% of Pick n Pay’s total issued ordinary shares, were sold at 25.50 rand each in an accelerated book-build, reflecting a 6.4% discount to the company’s closing price on Monday. The sale raised about 1.6 billion rand ($93.06 million) in proceeds.
Following the transaction, the Ackerman family’s voting interest in the company will decline to 36.8% from 49%, relinquishing majority control while remaining the anchor shareholder to support the retailer’s turnaround efforts. The family will continue to hold 135.4 million ordinary shares in Pick n Pay.
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Image Credit: ESM
