Table of Contents
Key Points
- Titan Fincap Solutions, linked to Christo Wiese, acquired 3.83 million Shoprite shares for R1.1 billion ($63.1 million) in an on-market transaction on Oct. 7, 2024.
- The purchase settles a scrip loan agreement from October 2023, with shares bought at R290 ($16.64) per share, matching the borrowed quantity.
- A total return swap tied to Shoprite’s shares, worth R1.11 billion ($63.7 million), was executed and settled by Oct. 8, 2024.
Titan Fincap Solutions Limited, associated with South African billionaire Christo Wiese, has completed the acquisition of 3.83 million shares in Shoprite Holdings, South Africa’s largest retailer, for R1.1 billion ($63.1 million). The acquisition was disclosed in a regulatory filing on the Johannesburg Stock Exchange (JSE).
The purchase, finalized on Oct. 7, 2024, concludes a scrip loan agreement that allowed Titan Fincap to borrow 3,831,164 ordinary shares of Shoprite on Oct. 12, 2023. The on-market acquisition was executed at R290 ($16.64) per share, precisely matching the borrowed quantity, thereby settling the loan.
Derivative transaction complements loan settlement
In addition to the loan settlement, Titan Fincap completed a total return swap on Oct. 7, 2024. The off-market derivative, tied to Shoprite's share price, involved a notional value of R1.11 billion ($63.7 million) at a reference price of R290 ($16.64) per share. The swap was terminated and cash-settled the following day, Oct. 8, 2024.
The transactions do not affect the voting rights of Shoprite’s ordinary or deferred shares held by another Wiese-linked entity, Thibault Square Financial Services. Through this entity, Wiese holds 305,621,601 non-convertible, non-participating deferred shares, underscoring his enduring influence within the retail giant.
Christo Wiese’s influence in Shoprite remains strong
Known for steering Shoprite to become Africa’s largest retail conglomerate, South African billionaire, Christo Wiese remains actively involved in the group’s strategic direction. Shoprite operates more than 3,500 stores across Africa and employs more than 150,000 people.
Wiese, a major shareholder with a 10.67-percent stake in Shoprite, maintains indirect control over the shares through Titan Fincap’s parent company, Titan Premier Investments (TPI).
His total stake of 63,110,920 shares is presently valued at R18.3 billion ($1.05 billion), representing a significant portion of his estimated $1.6-billion fortune.
