South Africa’s Ackerman family hit with $36 million loss on Pick 'n Pay shares

Timilehin Adejumobi -

Key Points

  • The Ackerman family’s stake in Pick ‘n Pay has plunged by $36.11 million in the past 34 days amid market fluctuations.
  • Pick ‘n Pay shares on the JSE falls 18.18 percent, reducing its market capitalization below $1 billion.
  • Year-to-date, Pick ‘n Pay’s stock has edged up by 0.21 percent, with currency appreciation lifting the overall return to 2.54 percent.

The Ackerman family, founders of South Africa’s second-largest grocery chain, Pick ‘n Pay, has experienced a substantial decline in the market value of their investment. Over the past month, the family’s stake in the retail giant has dropped by more than $36 million.

According to data tracked by Billionaires.Africa, the family’s stake in Pick ‘n Pay has declined by R645.83 million ($36.22 million) over the past 35 days, amid recent fluctuations in the group’s share price on the Johannesburg Stock Exchange (JSE).

The recent decline contrasts with a previous gain of $13.9 million recorded from June 12 to July 5, when the family’s stake increased from $167.15 million to $181 million.

Pick ‘n Pay faces challenges amid strategic restructuring

Pick ‘n Pay, founded in 1967, remains a key player in Africa’s retail sector with more than 2,000 stores across eight African countries. Despite its prominence as South Africa’s second-largest grocer after Shoprite, the company has been navigating through turbulent market conditions and strategic restructuring.

Recently, Pick ‘n Pay successfully raised R4 billion ($2.5 million) through an oversubscribed rights offer. This initiative aims to reduce debt and support strategic growth plans. However, the company’s shares have fallen by 18.18 percent over the past 35 days, decreasing from R28.5 ($1.59) on July 16 to R23.32 ($1.3). 

Ackerman Family’s stake in Pick ‘n Pay dips by $36 million 

The Ackerman family currently holds a 25.53 percent stake in Pick ‘n Pay, equivalent to 124,677,238 shares. With the recent pullback in share price, the market value of the wealthy family’s joint stake in Pick ‘n Pay has declined from R3.55 billion ($199.30 million) on July 16 to R2.91 billion ($163.07 million). 

Your Money and Your Life

Pick ‘n Pay shares have managed a modest year-to-date gain of 0.21 percent on the JSE, with currency appreciation increasing the overall return to 2.85 percent. An initial investment of $100,000 at the start of the year would now be valued at $102,850, reflecting a profit of $2,850.