South African billionaire Christo Wiese has undertaken a strategic move to unlock value from his early investments in Africa’s largest retailer, Shoprite Holdings.
According to a SENS announcement published on Shoprite’s website and the Johannesburg Stock Exchange, Wiese, through Titan Fincap, a subsidiary controlled by his investment vehicle, Titan Premier Investments, sold 3.83 million ordinary shares at a price of R245 ($12.89) per share. The transaction is valued at R938.6 million ($49.45 million).
Wiese, who held an 11.58-percent stake in Shoprite, previously valued at more than $900 million as of Sept. 10, has now reduced his holdings in the retail giant. These Shoprite shares had been a significant component of his $1.1-billion fortune, establishing him as one of Africa’s wealthiest individuals.
This move by Wiese follows the receipt of a final dividend of R261.91 billion ($13.84 million), from his stake in Shoprite on Oct. 2. The dividend payout followed Shoprite’s resilient financial performance for the fiscal year 2023, which concluded on July 2, 2023.
Shoprite reported a 2.8-percent increase in profit for the fiscal year 2023, rising from R5.74 billion ($300.17 million) in the prior year to R5.9 billion ($308.55 million). This performance is noteworthy, in light of challenging operating conditions and an increase in energy costs, which contributed to elevated operating expenses and subsequently impacted profit margins.
The company demonstrated robust revenue growth throughout the year, achieving a substantial 17.1-percent increase. Shoprite’s revenue rose from R187.53 billion ($9.8 billion) in 2022 to R219.53 billion ($11.48 billion) in 2023.
In recognition of its resilience, the board of directors at Shoprite announced a final dividend of R4.15 ($0.217) per share. This represented a full-year dividend per share growth of 10.5 percent, reinforcing Shoprite’s commitment to delivering value to its shareholders and stakeholders.
