Key Points:
- Pick ‘n Pay’s rebounding stock price has boosted the Ackerman family’s wealth by $21 million in just 16 days.
- The company’s share price jumped over 15% after leadership changes, pushing its market cap above $635 million.
- Pick ‘n Pay’s stock is up modestly year-to-date, offering investors a 4.64% return so far in 2024.
South Africa’s wealthy Ackerman family, the founders of Pick ‘n Pay South Africa’s second-largest grocer, has experienced a significant increase in wealth due to a rebound in the market value of their shares in the leading retail group.
According to data tracked by Billionaires.Africa, the family’s stake in Pick ‘n Pay has surged by R397.7 million ($20.96 million) over the past 16 days. This follows a strong recovery in Pick n Pay shares on the Johannesburg Stock Exchange (JSE) after recent setbacks.
This builds on gains recorded between April 17 and May 21, when the market value of the Ackerman family’s stake in Pick ‘n Pay increased by R199.48 million ($10.97 million) from R2.35 billion ($129.45 million) to R2.55 billion ($140.42 million).
Leadership changes and market response
Pick ‘n Pay, established in 1967, is a leading player in Africa’s retail sector, with more than 2,000 stores across eight African countries. It is South Africa’s second-largest grocer, following Shoprite. The Ackerman family currently holds a 25.53 percent stake in Pick ‘n Pay, equivalent to 124,677,238 shares.
Last month, Gareth Ackerman, chairman of Pick ‘n Pay and son of the late retail tycoon Raymond Ackerman, announced his resignation and a plan to cede majority shareholder voting rights following a challenging year for the company.
In response to this announcement, Pick ‘n Pay shares have rebounded significantly on the JSE. In the past 16 days, shares have surged by over 15 percent, rising from R21.16 ($1.115) on May 21 to R24.35 ($1.283), boosting the company’s market capitalization above $635 million and delivering substantial gains to shareholders.
With the recent share price increase, the market value of the Ackerman family’s stake has climbed by R397.72 million ($20.96 million) over the past 16 days, from R2.64 billion ($139 million) on May 21 to R3.04 billion ($159.97 million).
Your Money and Your Life: Positive year-to-date performance
After a turbulent 2023 that saw the company’s share price fall below 25 rand ($1.30), Pick ‘n Pay’s stock on the JSE has delivered modest year-to-date gains of 4.64 percent to investors.
Pick n Pay shares on the JSE have risen 4.64 percent so far this year. This means that an initial investment of $100,000 at the beginning of the year would now be worth $104,642, representing a profit of $4,640.
