Johannesburg – The founding Ackerman family has completed a significant divestiture of its stake in Pick n Pay, selling approximately 64 million shares for a cash injection of around R1.6 billion ($93.06 million). The sale, which marks the family’s formal step back from majority control of the struggling retail giant, was executed via an accelerated book-build on Tuesday.
The placement shares, which represent an 8.5% slice of Pick n Pay’s total issued ordinary stock, were priced at R25.50 apiece—a 6.4% discount to the retailer’s closing price on Monday. This move follows a commitment made in May 2024 to relinquish control as part of a crucial turnaround strategy aimed at halting losses, slashing debt, and clawing back market share from rivals.
Following the transaction, the Ackerman family’s voting interest in the company will sharply shrink from 49% to 36.8%. While this transition hands over majority control, the family stated its intent to remain the anchor shareholder, committed to supporting the efforts of the new leadership team in navigating the grocer’s comprehensive revamp. Furthermore, the family will retain a substantial holding of 135.4 million ordinary shares in the group.
The announcement coincides with the impending retirement of Gareth Ackerman, who will step down as chairman after 14 years in the role, concluding his four-decade-long association with the company. The sale and his departure underscore a pivotal moment for the retailer, signalling a decisive shift away from family stewardship and towards a new operational and governance structure designed to restore the company’s financial health and competitive standing in the cutthroat South African grocery sector.
