The Ackerman family, founders of South African retail giant Pick n Pay, have significantly reduced their control over the group after selling an 8.5% stake. This move, executed through an accelerated bookbuild, raised approximately R1.6 billion.
According to Pick n Pay, the family offloaded 64 million ordinary shares at R25.50 each, representing a 6.4% discount. This sale is intended to settle third-party funding that was raised to support Pick n Pay's restructuring and recapitalisation efforts last year.
The sale also triggers the cancellation of 105 million “B” shares linked to the placement shares, effectively removing their voting rights. As a result, the Ackerman family's voting control in Pick n Pay drops from 49% to 36.8%, while their economic interest decreases from 26.7% to 18.2%.
Despite this significant reduction, the Ackerman family will retain 135.3 million ordinary shares and have committed to not selling any further shares for the next 90 days.
This dilution of ownership comes amid a major governance shake-up within Pick n Pay. Earlier this year, Gareth Ackerman stepped down as chairman, ending decades of family leadership. He stated that the family had already withdrawn from direct executive involvement, entrusting day-to-day operations to professional management.
The Ackerman family has reaffirmed their commitment to Pick n Pay's turnaround strategy under the leadership of CEO Sean Summers. They previously supported last year’s rights offer with R1.1 billion and backed the separate listing of Boxer Retail. Recent actions, such as handing Summers ownership of half of his performance-based shares, demonstrate the group's confidence in his turnaround efforts. 2 million shares valued at R56.6m vested at the end of October after key turnaround pillars were successfully implemented.
What does this mean for Pick n Pay?
This shift in ownership structure marks a significant turning point for Pick n Pay. While the Ackerman family remains involved, the increased role of professional management could lead to new strategies and approaches. The success of Sean Summers' turnaround plan will be crucial in determining the future of the retailer.
Key takeaways:
- Ackerman family reduces stake in Pick n Pay.
- Voting control decreases from 49% to 36.8%.
- Family remains committed to Pick n Pay's turnaround.
- Sean Summers' leadership is key to future success.