The Ackerman family, one of South Africa’s most affluent and influential business families, is grappling with a substantial financial setback as their investments in the retail giant Pick ‘n Pay has declined by $55 million in recent times.
This decline in their fortunes comes in the wake of a broader market trend where investors are scaling back their positions in the company, thereby triggering a significant downturn in the company’s share price.
The Ackerman family’s stake in Pick ‘n Pay has declined by R1.02 billion ($55.04 million) over the past three weeks, marking a particularly challenging period for the South African billionaire family.
This financial downturn compounds the significant losses the family has already suffered this year due to the sustained decline in Pick n Pay shares on the Johannesburg Stock Exchange.
Pick ‘n Pay, founded in 1967 and a top player in South Africa’s retail sector, has been wrestling with a challenging business environment lately.
With an extensive network of more than 2,000 stores spanning eight African countries, it ranks as the nation’s second-largest retailer, behind Shoprite Holdings.
The Ackerman family, known for their immense wealth, expansive real estate ventures, and diverse private holdings, owns a substantial 25.53-percent stake in Pick ‘n Pay, which translates to a staggering 124,677,238 shares in the retail giant.
Since Oct. 12, Pick ‘n Pay shares have plummeted by 24.70 percent, plummeting from R32.99 ($1.787) on Oct. 12 to R24.84 ($1.346) at the time of this report, leading to substantial losses for its shareholders, including the Ackerman family.
The recent decline in Pick ‘n Pay’s shares has caused its market capitalization to dip below $665 million, effectively removing it from the ranks of South African billion-dollar companies. This has also resulted in a R387.7 million ($20.2 million) slump in the market value of the Ackerman family’s stake in the retailer over the past three weeks.
According to data tracked by Billionaires.Africa, the family’s stake has also slumped from R4.11 billion ($222.79 million) on Oct. 12 to R3.09 billion ($167.75 million) as of the time of this report.
