Table of Contents
Key Points
- Silverpoint Capital sold $226 million worth of Pepkor shares, cutting its stake from 8.51% to 4.45% in under two weeks.
- The move follows Ibex’s $1.6 billion exit and PIC’s stake increase, reshaping Pepkor’s institutional investor base and board dynamics.
- Despite shareholder churn, Pepkor posted 23.4% profit growth and opened 111 new stores across Africa in H1 2025.
US-based hedge fund, Silverpoint Capital, offloaded nearly $226 million worth of shares in Pepkor Holdings Ltd., reducing its stake in less than two weeks to 4.45 percent in the South African retail giant backed by billionaire Christo Wiese.
The disposal, confirmed by Pepkor in a shareholder notice on Aug. 4, reflects a swift strategic retreat from its initial 8.51 percent holding.
Silverpoint trims stake early after bold entrance
The Greenwich, Connecticut-based fund, which manages about $39 billion in assets, notified Pepkor and South Africa’s Takeover Regulation Panel that it had offloaded R4.06 billion ($225.94 million) worth of shares on July 30. This trimmed its stake from R8.41 billion ($470.4 million) to R4.43 billion ($246.7 million) in just eleven days.
Silverpoint’s initial entry—via an 8.51 percent stake acquired on July 25—was seen as a bold bet on Pepkor’s recovery and Christo Wiese’s discount retail empire. But the rapid selloff suggests a tactical recalibration, likely aimed at locking in short-term gains or mitigating risks tied to South Africa’s consumer environment and Pepkor’s post-Steinhoff baggage.
The hedge fund is known for investing in distressed or undervalued assets with recovery upside, and its sharp reduction introduces fresh volatility to Pepkor’s investor base. The company owns nearly 6,000 retail outlets across Africa and added 111 new stores in H1 2025 alone.
Strategic rotation amid post-Ibex reshuffle
Silverpoint’s exit follows a broader rebalancing of Pepkor’s shareholder structure. On July 24, just a day before Silverpoint’s entry, the Public Investment Corporation (PIC) increased its stake from 14.9 percent to 15.46 percent, investing R548.35 million ($31.1 million).
This came on the heels of Ibex Investment Holdings—formerly Steinhoff International—unloading nearly its entire 28.48 percent stake through a R28-billion ($1.6 billion) accelerated bookbuild. The exit paved the way for new institutional entrants and altered Pepkor’s governance mix.
Retail momentum cushions shareholder churn
Despite the churn, Pepkor—whose portfolio includes nearly 6,000 discount retail outlets across Africa—continues to deliver strong operational performance. For the six months to March 2025, net profit rose 23.4 percent to R3.05 billion ($172.7 million), while revenue climbed 12.8 percent to R48.81 billion ($2.76 billion), driven by robust retail demand and cost efficiencies.
Pepkor, a South African investment and holding company, owns retail chains across Africa, Australia, and Eastern Europe, offering apparel, footwear, textiles, and accessories. In 2014, South African billionaire Christo Wiese sold Pepkor to Steinhoff International in exchange for a 20 percent stake in Steinhoff.
Recently, Pepkor added 111 new stores, bringing the total to 5,823. Silverpoint’s swift reduction introduces a fresh layer of investor churn as Pepkor navigates post-Steinhoff legacy risks and a competitive retail landscape.
