Table of Contents
Key Points
- PIC’s $31 million purchase lifts its Pepkor stake to 15.46%, reinforcing confidence in the Christo Wiese-backed retail giant.
- The move follows Ibex’s $1.6 billion selloff, marking a full exit from Pepkor and closing a scandal-stained chapter for Steinhoff.
- Pepkor’s H1 2025 net profit rose 23.4% to $172.66 million, supported by fintech growth, retail expansion, and cost discipline.
Africa’s largest asset manager, the Public Investment Corporation (PIC), has deepened its stake in Pepkor Holdings Ltd.—the South African billionaire Christo Wiese-backed retail giant—with over $30 million share purchase, lifting its total investment above $870 million. The acquisition boosts PIC’s stake from 14.9 percent to nearly 15.5 percent, reinforcing its role as a leading institutional backer of the retail giant.
Dissclosed on July 24, the latest purchase raises PIC’s holding by 0.55 percentage points to 15.46 percent and comes on the heels of a major exit by Ibex Investment Holdings—formerly Steinhoff International—which cut its beneficial interest in Pepkor from 28.48 percent to just 0.19 percent in a R28-billion ($1.6 billion) accelerated bookbuild.
Beyond opportunism
PIC’s latest share purchase of 0.55 percent worth R548.35 million ($31.11 million) isn’t just opportunistic—it extends a consistent accumulation strategy which has progressively increased its holdings to R15.41 billion ($874.34 million).
Earlier this year, on January 10, PIC disclosed raising its stake to 15.151 percent. That came months after a June 24 move that lifted its interest to 10.295 percent, underscoring a long-standing confidence in Pepkor’s retail resilience and balance-sheet strength.
Pepkor—owner of discount chains Pep and Ackermans—operates nearly 6,000 stores across Africa, with a footprint extending into Australia and Eastern Europe. The company’s roots with Steinhoff date to 2014, when Christo Wiese sold Pepkor to the now-disgraced conglomerate in return for a 20 percent stake, making him its largest shareholder.
A vote of confidence amid transition
PIC’s increasing exposure comes as Ibex (formerly Steinhoff) retreats under regulatory pressure. In recent months, the South African Reserve Bank prohibited Ainsley Holdings, a Steinhoff subsidiary, from trading 13.7 percent of Pepkor shares amid compliance scrutiny.
For Christo Wiese, whose fortune took a hit in the Steinhoff collapse, PIC’s continued investment signals institutional backing for Pepkor’s standalone value. The endorsement marks a pivotal moment in Pepkor’s post-Steinhoff era, reinforcing confidence in its operational resilience and strategic direction.
In the first half ended March 2025, Pepkor reported a 23.4 percent increase in net profit to R3.05 billion ($172.66 million) from R2.47 billion ($139.91 million) a year earlier. Revenue climbed 12.8 percent to R48.81 billion, up from R43.26 billion, underpinned by consistent retail momentum, disciplined cost controls, and expansion in its fintech segment.
PIC: A powerhouse in SA markets
Founded in 1911 and corporatized in 2005, the PIC manages over R3 trillion ($173.27 billion) in assets on behalf of public servants. As the largest investor on the Johannesburg Stock Exchange (JSE), it controls more than 10% of the exchange’s total market cap, with significant stakes in names like Investec, Tiger Brands, and Clicks Group.
