Ivan and Lynnette Saltzman, a South African billionaire family, and other directors in Dis-Chem Pharmacies, have completed the sale of three warehouses to a leading pharmacy group in a deal worth R217 million ($14.2 million).
Dis-Chem Pharmacies is a leading pharmacy retail and healthcare group based in South Africa. The Saltzman family, which founded the group in 1978 through Lynette and Ivan Saltzman, owns a beneficial 45.2-percent stake in the healthcare group.
The sale is expected to end a protracted ownership crisis surrounding the facilities, which has drawn criticism from investors and equity market observers since the group’s listing in 2016.
Dis-Chem revealed that the three distribution centers were acquired in accordance with its cost-cutting strategies and decision to reduce rental expenses incurred outside the group.
“The ownership of the assets ensures that the group holds the necessary strategic assets for long-term growth,” the group said.
The distribution centers in South Africa, which are located in Cape Town, Delmas and KwaZulu-Natal, are owned by a complicated structure of trusts and companies controlled by the Saltzmans and other directors, former directors and insiders.
Dis-Chem and related parties have leases on the facilities.
Other owners who will be compensated for their ownership interest include Stan Goetsch, Brian Epstein, KS Sterling and CJ Williams, in addition to Ivan and Lynnette Saltzman, who will benefit from the value unlock generated by the sale of the warehouse facilities.
In response to the news, shares in the group were trading at R34.79 ($2.27), 63 basis points lower than their opening price on the Johannesburg Stock Exchange this morning, giving the Dis-Chem a market capitalization of R30.1 billion ($2 billion).
The market value of Saltzman’s 45.2-percent stake is R13.6 billion ($888.7 million) at the current price.
On Nov. 29, 2021, the healthcare group paid an interim dividend of R75.8 million ($4.9 million) to Lynette and Ivan Saltzman, who serve on the board of directors.
