(Reuters) -Pick n Pay’s founding Ackerman family has sold about 64 million shares, the South African retailer said on Tuesday, more than a year after pledging to cede control of the struggling grocer.
In May 2024, the Ackerman family said it will relinquish control of Pick n Pay as part of a revamp aimed at stemming losses, cutting debt and regaining market share.
Gareth Ackerman, who had been with the company for four decades, said he will retire as chairman after 14 years in the job.
The placement shares, representing an 8.5% of Pick n Pay’s total issued ordinary shares, were sold at 25.50 rand apiece in an accelerated book-build, a 6.4% discount to the company’s closing price on Monday. It raised about 1.6 billion rand ($93.06 million) in proceeds.
The Ackerman Family’s voting interest in the company will shrink to 36.8% from 49% following the sale, as it gives up majority control but retains the role as the anchor shareholder to support the retailer’s turnaround efforts.
Following the placement, the Ackerman family will continue to hold 135.4 million ordinary shares in Pick n Pay.
($1 = 17.1938 rand)
(Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)
