Ackermans raise R1.6bn in Pick n Pay share sale to settle restructuring debt

Key topics:R1.6bn raised via accelerated bookbuild to repay restructuring-related funding.Ackerman voting interest drops from 49% to 36.8% after B-share voting rights fall away.Family stays committed to Pick n Pay, agreeing to a 90-day post-deal lock-up.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.Pick n Pay Stores Limited has confirmed the successful completion of an accelerated bookbuild offering (the "Placement") by its founding investor, Ackerman Investment Holdings (RF) Proprietary Limited, and related persons (collectively, the "Ackerman Family"). The Placement, which was announced on 17 November 2025 and concluded the following day, saw the disposal of ordinary shares to raise approximately R1.6 billion.The transaction involved the successful placement of 64,038,857 ordinary shares ("Placement Shares"), which represents approximately 8.5% of Pick n Pay’s total issued ordinary shares. The shares were placed at a price of R25.50 per share, which represented a 6.4% discount when compared to the closing share price of R27.25 on 17 November 2025. Settlement of the Placement Shares on the Johannesburg Stock Exchange is anticipated to occur on or about 21 November 2025.Rationale for the placementThe primary driver for the share disposal stems from the Ackerman Family’s financial support provided during the Company's 2024 restructuring and recapitalisation process. The Ackerman Family had provided R1.1 billion of equity support to Pick n Pay’s rights offer, during which they followed their rights in full and subscribed for 64,038,857 ordinary shares.The family informed the Company that, owing to the improvement in Pick n Pay's financial position and performance, they now wish to use the proceeds from the Placement to settle the third-party funding they had raised to facilitate the restructuring and recapitalisation effort. This includes covering the associated professional fees, other costs, and 16 months of servicing that funding.Significant shift in control structureA key consequence of the Placement involves a material change in the Ackerman Family’s ownership structure within Pick n Pay.The Placement Shares are attached to 105,186,279 "B" shares held by the Ackerman Family. While the "B" shares themselves were not disposed of, they automatically lose their voting rights upon settlement of the Placement and will be cancelled by Pick n Pay.As a result of the disposal of the Placement Shares and the associated loss of voting rights from the "B" shares, the Ackerman Family’s:Aggregate voting interest in Pick n Pay will decrease significantly from 49.0% to 36.8%.Aggregate economic interest will decrease from 26.7% to 18.2%.Following the successful Placement, the Ackerman Family will continue to hold 135,354,720 ordinary shares in Pick n Pay..Ongoing commitment and lock-upDespite the reduction in both voting and economic interest, the Ackerman Family stressed its continued dedication to the retailer. The family remains fully committed to Pick n Pay, including CEO Sean Summers and his leadership team, as well as the Company's ongoing turnaround plan and growth strategy. They confirmed their intention to remain an anchor shareholder and long-term investor in Pick n Pay.In a move consistent with standard market practice, the Ackerman Family has agreed to a 90-day lock-up period post-settlement of the Placement, subject to customary exceptions and waivers.Transaction structure and advisorsThe Placement was structured as a private placement via an accelerated bookbuild offering and was made exclusively to qualifying investors. It was explicitly noted that the offering was not a public offer in South Africa or restricted jurisdictions such as the United States, Australia, Canada, or Japan.Rand Merchant Bank (a division of FirstRand Bank Limited) and Morgan Stanley & Co International Plc acted as the Joint Global Coordinators for the Placement. Rand Merchant Bank also served as the Sponsor. Advisors to the Selling Shareholder included Rothschild & Co and Morado Partners.The successful capital raise allows the Ackerman Family to finalise the repayment of funding obligations incurred while supporting Pick n Pay’s crucial restructuring efforts. This step provides clear financing resolution for the family’s investment commitments while ensuring they retain a significant, long-term stake in the company’s future.

Ackermans raise R1.6bn in Pick n Pay share sale to settle restructuring debt

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