Dis-Chem founder sells R1.4 billion in shares

Dis-Chem founder Ivan Saltzman recently sold R1.43 billion worth of the company’s shares to Coronation, while his son, Saul Saltzman, sold R88 million.

Dis-Chem informed shareholders yesterday that Saltzman had sold 50 million of the company’s securities for a value of R1.425 billion. He disposed of these shares through Ivlyn Local Investment Holdings. 

Saltzman’s son, Saul, also sold 3 million shares for a value of R87.9 million.

The founder’s large sale took Ivlyn’s stake in the company to 29.31%, where it was previously 35.12%.

Coronation Asset Management acquired the 5.8% Ivlyn sold, and its beneficial interest in Dis-Chem now amounts to 29.83%.

Saltzman and his wife, Lynette, founded the company in 1978 when the first Dis-Chem store opened.

Dis-Chem has since grown to 250 stores and reported R32 billion in revenue in its latest results.

The company was listed on the JSE in 2016, shortly after opening its 100th store. It currently trades on the bourse with a market cap of R25.92 billion.

Saltzman served as the company’s CEO for 45 years before he stepped down in June 2023. He was replaced by Rui Manuel Morais, the company’s former CFO.

Morais and his executive team are set to acquire about R750 million worth of shares from the Saltzman family’s stake in the pharmacy group, Business Day reported.

In 2023, the company said that as part of the handover, the Saltzman family will divest 32.25 million Dis-Chem ordinary shares – which equates to 3.75% of its issued share capital – to Morais and a group of key senior executives to ensure “their ongoing commitment”.

Recently, the Saltzmans and other directors and prescribed officers of Dis-Chem also sold its head office and Midrand distribution centre to the company in a transaction valued at around R500 million.

The company explained that this was to ensure that Dis-Chem owns all its core distribution centres, as well as its head office premises in Midrand. 

“The ownership of the asset is a long-term strategic objective of the group that has a positive impact on the income statement and a minimal impact on the balance sheet,” the company said.