Business

Pick n Pay Sets Out $221 Million Offer Terms in Retailer Revamp

A sign sits on display above the entrance to a Pick n Pay Stores Ltd. supermarket in Johannesburg, South Africa, on Monday, May 11, 2020. South Africa’s government expects the coronavirus to pose a threat to public health for at least a year and is intensifying measures to slow its spread as experts warn of a second wave of infections with public life resuming, President Cyril Ramaphosa said. (Waldo Swiegers/Bloomberg)

(Bloomberg) -- 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.

©2024 Bloomberg L.P.

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