Pick n Pay sells US$269M Boxer stake to fund recovery plan

SOUTH AFRICA – Pick n Pay has sold around 57.3 million shares in Boxer through an accelerated bookbuild targeted at institutional investors, trimming its ownership in the grocery chain while raising funds for its ongoing restructuring efforts.

The shares were priced at 82 rand per share, equivalent to about US$4.47, giving the transaction a total value of roughly US$256 million (R4.7 billion) based on current exchange rates.

In contrast, the offer price stood 3.2% above Boxer’s 30-day volume-weighted average share price recorded on Monday.

Following the disposal, Pick n Pay’s interest in Boxer fell to 53.1% from nearly 65.6%.

However, the retailer will continue to hold a controlling position in the business, which has emerged as one of the fastest-expanding supermarket chains in South Africa.

The company said the capital raised from the sale would go toward financing its turnaround programme and supporting future investment and growth projects across the group.

Boxer’s role in Pick n Pay’s recovery

Pick n Pay floated Boxer on the Johannesburg Stock Exchange in late 2024 as part of a recapitalisation process aimed at lowering debt levels and stabilising the retailer after prolonged pressure on earnings within its core supermarket business.

The listing attracted significant attention in South Africa’s retail industry because it formed a key part of the company’s attempts to repair its balance sheet and improve financial performance after years of operational difficulties.

Established in 1977, Boxer has expanded its footprint across township areas and lower-income communities, allowing it to attract more price-conscious shoppers as many consumers continue to shift toward lower-cost grocery options amid rising living expenses and sluggish economic conditions.

That expansion has become increasingly important for Pick n Pay as the retailer competes with rivals including Shoprite, Woolworths and SPAR in a highly competitive grocery market.

At the same time, Pick n Pay has continued to face pressure linked to electricity supply disruptions, higher transport and logistics expenses and weaker household spending in South Africa’s economy.

Under chief executive Sean Summers, who returned to lead the retailer in 2023, the company has been working to improve store operations, lower expenses, and regain investor confidence while relying increasingly on Boxer’s growth to support its longer-term plans.

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