Jameson maker Pernod Ricard raises stake in Jumia to 7.5%

Daba Finance/Pernod Ricard raises stake in Jumia to 7.5% after buying 1.27m shares

AFRICAN STOCKS AND FINANCEAugust 15, 2024 at 12:07 PM UTC

TLDR

Pernod Ricard, a prominent wine and spirits company, boosts investment in Africa's top e-commerce platform Jumia.
Acquisition of 1.27 million shares raises Pernod Ricard's stake in Jumia from 6.4% to 7.5%.
Estimated investment of around $6 million made by Pernod Ricard in Jumia's secondary sale.

Pernod Ricard, the world's second-largest wine and spirits company and the producer of well-known brands like Jameson, has expanded its investment in NYSE-listed Jumia, Africa's leading e-commerce.

The company recently purchased 1.27 million shares in Jumia's secondary sale, as disclosed in a regulatory filing. This acquisition has increased Pernod Ricard's stake in Jumia from 6.4% to 7.5%.

Although the exact price of the newly acquired shares is not specified, Jumia's stock (JMIA) was trading at $4.68 on August 6, the day Pernod Ricard made the purchase, according to Jumia's SEC filing. If this was the purchase price, the investment would amount to around $6 million.

Key Takeaways

Pernod Ricard has been a consistent investor in Jumia, once holding as much as an 8.2% stake in the company. However, as Jumia issued more shares between 2020 and 2021, Pernod Ricard's position was diluted to 6.4%. Despite this dilution and the recent challenges Jumia has faced—such as a decline in share price after missing revenue estimates in Q2 2024 and concerns about further dilution from secondary sales—Pernod Ricard's recent purchase of additional shares underscores its ongoing confidence in the African e-commerce leader.

Finance

Secondary Shares

E-commerce

Technology

Pernod Ricard

Jameson