Trading Day – Shoprite continues to show good growth

Naspers CEO Bob van Dijk sells R1.6 billion worth of Naspers shares while the company’s share buyback plan props up the stock. 

Shoprite continues to show good growth and reports a 23% increase in earnings.

Here is the biggest news of the day.

  • Naspers CEO Bob van Dijk sells R1.6 billion worth of Naspers shares while the company’s share buyback plan props up the stock. The sale was related to the exercise of 832 000 ordinary share options that Van Dijk was awarded in 2014, which vested over a 3-year period from 2017 to 2019. The options had a strike price of R1046.88. Van Dijk disposed of 675 415 shares “to cover taxes and other related costs.” 156 585 shares will be transferred to his name with the possibility of some of it to still being sold to “realise cash”. The average price of shares sold was R2428.43, indicating a potential profit of R930 million excluding taxes. The average sale price was 27% higher than the share’s closing price before the company share buybacks were announced. Clearance has been received in terms of paragraph 3.66 of the JSE Listings Requirements.

The transactions are detailed below:

DateNumber of Shares SoldAverage PriceTotal Transaction Value
29 Aug69 225R2536.91R175.6 million
30 Aug109 393R2453.05R268.3 million
31 Aug233 835R2442.99R571.3 million
1 Sep106 377R2405.45R255.9 million
2 Sep123 995R2353.88R291.9 million
5 Sep32 590R2369.62R77.2 million
Total675 415R2428.43R1 640.2 million
  • Shoprite continues to show good growth, reporting a 23% increase in earnings per share (EPS) of R10.47. Revenue increased 10% to R184 billion. CEO Pieter Engelbrecht said that they are proud of the results, especially because it is coming off a base that is already high. Checkers Sixty60 continued to innovate and grow its sales. The company declared a final dividend for the year of R3.67 per share, bringing the total dividend to R6 per share, up 10%.
  • OPEC+ agrees on a small oil production cut. Supply will be cut by 0.1 million barrels per day (BPD), amounting to only 0.1% of global demand. They also agreed to the possibility of interim meetings any time before the next scheduled meeting on 5 October to further adjust production if necessary.
  • Volkswagen announces Porsche IPO planned for early October. The IPO could be the largest in German history and Europe since 1999. Investors expect a valuation between 60 billion and 85 billion euros. Qatar will be a cornerstone investor intending to commit to nearly a 5% stake in the newly listed company.
  • Old Mutual announces purchase of specialist insurer Generic. The company announced that it had signed a share purchase agreement to acquire 100% of Genric Insurance Company Limited, a non-life insurance company based in Gauteng.