Ackerman family forego control of Pick n Pay after nearly 60 years
TLDR
- Ackerman family to relinquish control of Pick n Pay, South Africa's third-largest grocer after nearly sixty years.
- AIH to surrender majority stake in Pick n Pay through a rights offer, reducing voting control just below 50%.
- Gareth Ackerman stepping down as chair next year, siblings Suzanne and Jonathan Ackerman to remain on the board.
After nearly sixty years, the Ackerman family will relinquish control of Pick n Pay, South Africa’s third-largest grocer by revenue. The retailer announced on Monday that Ackerman Investment Holdings (AIH) would surrender its majority stake in the business through a rights offer.
"AIH and its related persons (the Ackerman family) agreed to reduce majority shareholder voting control of Pick n Pay, with the exact process yet to be finalized, resulting in their voting rights falling just below 50% after the planned rights offer," the group stated.
The family will also forgo the right to nominate the chairman, CEO, and CFO immediately. Gareth Ackerman, who served as chair for 14 years, will step down from the position next year. However, he, along with siblings Suzanne and Jonathan Ackerman, will remain on the board. The move is part of a revamp aimed at stemming losses, cutting debt, and regaining market share.
Key Takeaways
Established by Raymond Ackerman in 1967, Pick n Pay was once South Africa's leading retailer. However, over the past decade, reported inappropriate strategic initiatives failed to prevent profit declines in its core business. Last year, the retailer urgently reinstated former leader Sean Summers as CEO after warning of its first interim loss since at least 2001. It recently disclosed weak annual earnings, attributed to a significant trading loss. The group, known for its discount grocery chain Boxer, reported a comparable loss before tax and capital items of 1.67 billion rand ($91 million) in the year ending Feb. 25, compared to a profit of 1.8 billion rand the previous year.
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