Pick n Pay plunges after Ackerman family sells R1.6 billion worth of shares

Pick n Pay’s share price is down over 7% the day after the retailer announced that Ackerman Investment Holdings would sell 64 million of their shares in the company.

Ackerman Investment Holdings houses the legendary Ackerman family’s stake in the retail giant, which was founded by the late Raymond Ackerman in 1967.

On Monday, 17 November, after market close, Pick n Pay informed its shareholders that the Ackerman family plans to sell 64 million of their shares in the company through an accelerated private bookbuild.

In this announcement, the retailer explained that the Ackerman family supported Pick n Pay’s restructuring and recapitalisation in 2024.

The family provided R1.1 billion of equity support to the retailer’s rights offer and supported Boxer’s initial public offering and separate listing.

To support the company’s turnaround, the Ackerman family followed its rights in full and subscribed for 64,038,857 ordinary shares in Pick n Pay in the rights offer.

However, on Monday, the family said it wishes to settle the third-party debt it raised to fund its support by selling 64,038,857 of its shares in the company.

The family said it would sell these shares through a private placement by way of an accelerated bookbuild offering to qualifying investors.

These 64 million shares are also attached to 105,186,279 “B” shares, which automatically lost their voting rights and were cancelled by Pick n Pay.

The announcement informing shareholders that the Ackerman family plans to sell their shares was released on Monday at around 17:30.

On Tuesday morning at around 7:30, Pick n Pay informed shareholders that the shares have been placed at a price of R25.50 per share.

This represents a 6.4% discount to Pick n Pay’s closing price of R27.25 on 17 November 2025.

It said this sale raised proceeds of around R1.6 billion, with the family’s voting interest in Pick n Pay now down to 36.8% and its aggregate economic interest now at 18.2%.

The retailer emphasised that the Ackerman family will continue to hold 135,354,720 ordinary shares in Pick n Pay and remains fully committed to the company, CEO Sean Summers and his leadership team.

This is also why the family agreed to a lock up of 90 days following the sale of these shares.

Pick n Pay’s share price is down over 7% at the time of publication on 18 November. In the year to date, Pick n Pay’s share price has declined by around 17.5%.