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Key Points
- Silverpoint Capital took an 8.51% stake in Pepkor, investing $470 million in its first reported holding in the company.
- Africa’s PIC raised its Pepkor stake to 15.46%, investing $31.11 million and bringing total exposure to $874.34 million.
- Ibex exited its 28.48% holding, opening room for new investors and reshaping Pepkor’s shareholder base and governance structure.
US-based hedge fund Silverpoint Capital has taken a sizable stake in Pepkor Holdings Ltd., the South African retail giant backed by billionaire Christo Wiese. The move comes just four days after Africa’s largest asset manager, the Public Investment Corporation (PIC), increased its own holdings in the company, signaling renewed interest from heavyweight investors.
In a notice released on July 28, Pepkor confirmed that Silverpoint had acquired an 8.51 percent stake—its first publicly disclosed position in the retailer—valued at R8.41 billion ($470.4 million). The Connecticut-based firm, which manages around $39 billion in assets, notified both Pepkor and South Africa’s Takeover Regulation Panel in line with regulatory requirements.
Institutional recalibration after Ibex exit
Silverpoint’s entry comes amid a broader institutional reshuffling. Just four days earlier, on July 24, PIC revealed it had raised its stake in Pepkor by 0.55 percentage points from 14.9 percent to 15.46 percent via a R548.35 million ($31.11 million) share purchase, bringing its total investment to R15.41 billion ($874.34 million).
The twin moves come after Ibex Investment Holdings—formerly Steinhoff International—cut its holding from 28.48 percent to 0.19 percent via a R28-billion ($1.6 billion) accelerated bookbuild, clearing the way for new investors and shifting Pepkor’s governance landscape.
Backing the bullish sentiment, Pepkor posted a 23.4 percent rise in net profit to R3.05 billion ($172.66 million) for the half-year to March 2025, with revenue up 12.8 percent to R48.81 billion ($2.76 billion), driven by strong retail momentum, cost control, and fintech growth.
Betting on retail resilience and turning the page
Silverpoint’s 8.51 percent stake makes it one of Pepkor’s top shareholders, while PIC’s increased holding reaffirms strong institutional backing. For both, Pepkor’s vast African footprint—nearly 6,000 stores under brands like Pep and Ackermans—offers prime exposure to value-driven consumers.
For Christo Wiese, the billionaire investor whose 2014 sale of Pepkor to Steinhoff laid the foundation for his enduring link to the retailer, these back-to-back endorsements are critical. Wiese, still one of the largest shareholders in Pepkor, has seen his business empire recover following the Steinhoff collapse that once threatened to upend it.
With Ibex exiting under regulatory pressure—including a Reserve Bank ban on trading 13.7 percent of shares—Pepkor enters a new phase of institutional realignment. Silverpoint and PIC’s moves reflect conviction in the retailer’s resilience and long-term growth.
Hedge fund meets institutional giant
Silverpoint Capital, based in Greenwich, Connecticut, is known for bold bets on turnaround opportunities and distressed assets. Its arrival adds the assertive edge of Wall Street to Pepkor’s investor base—complementing PIC’s steady hand as Africa’s largest asset manager.
Together, Silverpoint’s and PIC’s growing stakes signal renewed investor confidence in one of Africa’s most influential retail empires—unshackled from its troubled past and poised for strategic expansion.
