The Ackerman’s sale down has reduced its ownership of the company to 16.8% as it continues to refund itself after ploughing R1.1 billion into the ailing company to right it. With the Ackerman family selling down Pick’n Pay shares, an investment firm is buying in. Just after Pick’n Pay said the family’s holding fell from 25.4% to 16.8%, the company told shareholders that Allan Gray had increased its stake to 10.43%.
That funding was prompted by the fact that Pick’n Pay was under strain because of weak operations and a number of poorly performing stores. As a result, it underwent a major reset, including new leadership, and the separate JSE listing of discount brand Boxer. CEO Sean Summers is now leading the revival effort.
His plan includes shutting or converting stores that drag down performance, improving efficiencies, and reorienting the business toward growth. Recently, two million of his performance-based shares vested, giving him R56 million stake in the company. Summers returned from retirement specifically to execute the turnaround. Overall, Summers is entitled to four million shares tied to the retailer’s turnaround.
