End of an era for Pick n Pay as Ackerman family sells millions of shares

The Ackerman family plans to sell over 64 million Pick n Pay shares through an accelerated bookbuild to private investors to repay the funding it used to support the retailer’s 2024 recapitalisation.

This sale will significantly decrease the family’s voting rights and economic stake in the retail giant, which Raymond Ackerman founded in 1967.

This comes after the family provided significant support to Pick n Pay at the start of its turnaround plan in 2024, which included a highly successful rights offer.

On Monday, 17 November, after market close, Pick n Pay announced the launch of an accelerated bookbuild offering of shares held by Ackerman Investment Holdings.

The retailer explained that Ackerman Investment Holdings and its related and interrelated persons have long been the founding and anchor investor in Pick n Pay.

The Ackerman family supported Pick n Pay’s restructuring and recapitalisation in 2024 by providing R1.1 billion of equity support to the retailer’s rights offer and by supporting the initial public offering and separate listing of Boxer. 

At the time, the family followed its rights in full and subscribed for 64,038,857 ordinary shares in Pick n Pay in the rights offer.

Now, the Ackerman family informed Pick n Pay that they wish to settle the third-party funding raised to support its restructuring and recapitalisation, together with the associated professional fees and other costs, including 16 months of servicing that funding. 

Accordingly, the Ackerman family proposed disposing of up to 64,038,857 ordinary shares in Pick n Pay through an accelerated bookbuild offering.

These 64 million shares come with 105,186,279 attached “B” shares, which will automatically lose their voting rights and be cancelled by Pick n Pay. 

This transaction will result in the Ackerman family’s aggregate voting interest in Pick n Pay decreasing from 49.0% to around 36.8% and its aggregate economic interest decreasing from 26.7% to not less than 18.2%.

However, the family will continue to hold 135,354,720 ordinary shares in Pick n Pay, and “remains fully committed” to the retailer.

“The Ackerman family will continue to be an anchor shareholder and long-term investor in Pick n Pay,” the retailer said.

It added that the family has agreed to a “lock up” for a period of 90 days, i.e. they agreed not to sell any more shares for 90 days after this transaction is complete.

Pick n Pay explained that the placement is being made to qualifying investors only and is not an offer to the public in South Africa or in any other jurisdiction.

“The book for the placement is open with immediate effect and is expected to close as soon as possible,” the retailer said.

“Pricing and allocations will be announced as soon as practicable following the closing of the book.”