Pick n Pay set out the terms of a R4 billion rights offer that forms part of a revamp of South Africa’s third-biggest grocer by revenue.
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By Ana Monteiro
Pick n Pay Stores Ltd. set out the terms of a 4 billion-rand ($221 million) rights offer that forms part of a revamp of South Africa’s third-biggest grocer by revenue.
The Cape Town-based company will offer 252.2 million shares at 15.86 rand each, it said in a statement Thursday. That’s 42% less than the closing price on July 10.
Ackerman Investment Holdings Pty Ltd., the holding company for the family of Pick n Pay founder Raymond Ackerman, has committed to following its rights up to 1.01 billion rand. Other shareholders have also said they will take part in the offer; together with AIH, they hold about 45% of the shares in issue currently.
The rights offer will be followed by an initial public offering of Pick n Pay’s low-cost Boxer business, likely by the end of this year.
As part of a three-year turnaround plan, Sean Summers — whom the company abruptly brought back as chief executive officer last year — also is sifting out under-performing stores from about 100 outlets that may be converted, refurbished or closed as part of the South African grocer’s strategy to return to profitability.
Read also:
Pick n Pay’s strategic overhaul: All the details of the retailer’s revamp plan
🔒 Ted Black: Pick ‘n Pay’s cash revolution: CEO Summers simplifies success in Africa
Combative Sean Summers is back at Pick ‘n Pay – Gareth Ackerman appoints group’s ex-CEO in masterful coup
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