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Pick n Pay Stores Ltd., South Africa’s second-largest grocery chain, said the Ackerman family plans to sell 8.5 percent of its stake in the retailer. The family, which founded the company and holds its interest through Ackerman Investment Holdings, will offer up to 64,038,857 shares in a private placement. It will retain 135,354,720 shares after the sale.
The placement was priced at R25.50 ($1.48) per share, a 6.4 percent discount to the R27.25 ($1.58) closing level on Nov. 17, 2025. The transaction will raise about R1.6 billion ($92.9 million) and was executed via an accelerated bookbuild to institutional investors.
According to the company, the sale is intended to repay third-party funding the family secured to help support Pick n Pay’s restructuring and recapitalization, along with professional fees and other carrying costs linked to that support.
Family says support remains intact
The Ackermans backed the retailer’s turnaround efforts last year by providing R1.1 billion ($63.88 million) in equity during a two-step recapitalization. Pick n Pay also secured R4 billion ($232.1 million) through a rights offer that was fully oversubscribed.
The retailer previously disposed of assets to raise an additional R8.5 billion ($493.68 million) as part of its broader recovery plan. The fresh sale, valued at roughly R1.7 billion ($98.74 million) at current market prices, is another step in stabilizing the business.
In a statement, the family said it “remains fully committed to Pick n Pay, to CEO Sean Summers and his leadership team, and to the company’s turnaround plan and growth path.” They added they will continue to serve as long-term investors and anchor shareholders. The family also agreed not to sell further shares for 90 days.
If the full 8.5 percent is sold, the family’s voting interest will slip from 49 percent to no less than 36.8 percent. Its economic interest will fall from 26.7 percent to at least 18.2 percent.
Retailer shows signs of recovery
Pick n Pay operates more than 2,000 stores across eight African markets. The family reduced its direct control in August after the company posted a $171 million loss, prompting management changes and a sharper focus on cutting costs.
For the first half of fiscal 2026, the group reported a 45.3 percent reduction in headline losses to R439 million ($25.48 million), compared with R803 million ($46.61 million) a year earlier. Turnover rose 4.9 percent to R58.8 billion ($3.41 billion).
