The joint stake of South Africa’s Ackerman family in Pick ‘n Pay, a leading African retailer, has dropped by $52.20 million (R747.43 million) in market value since the start of June. A sell-down in the company’s shares triggered a $200.14-million loss for the company on the Johannesburg Stock Exchange.
According to Google Finance, shares in the leading supermarket chain store closed on a bearish note yesterday, June 18, at $3.654 (R52.32) per share on the JSE. It was a 2.82-percent drop as of the opening of the market. At this price, the South African retailer’s market capitalization is estimated at $1.80 billion (R25.82 billion).
Since June 1, its share price has declined from $4.061 (R58.15) to $3.654 (R52.32). This translates to a 10.03-percent, or $0.407 (R5.83), loss per share for shareholders in 17 days.
Pick ‘n Pay is the second largest supermarket chain in South Africa and one of the leading retailers in Africa.
Raymond Ackerman established the retailer after purchasing the first four Pick ‘n Pay stores in Cape Town, South Africa, in 1967. Since then, it has grown into a household name in South Africa and expanded its operations to Namibia, Botswana, Zambia, Swaziland and Lesotho.
With about 2,000 stores in total, the retailer recently opened its first store in Nigeria in March 2021, expanding its operational footprint to eight countries.
It owns a 49-percent share in the Zimbabwean supermarket chain TM Supermarkets and spent $837.10 million (R12 billion) on capital investments in the past eight years in line with its expansion plans.
The Ackermans own a joint stake of about 128,203,415 ordinary shares in the company.
Aside from founding the giant retailer and holding a controlling stake in the company, family members Raymond Ackerman, Wendy Ackerman, Gareth Ackerman, Jonathan Ackerman and Suzanne Ackerman-Berman all have vital roles in the business.
The recent drop in the company’s market price has seen the value of their stake decline by about 10 percent since the start of June.
The market value of their joint equity stake has fallen from $520.61 million (R7.46 billion) on June 1 to $468.42 million on June 18. This translates to a $52.20-million (R747.43 million) loss for the Ackermans in 17 days.
