The Pick n Pay Group has successfully completed its rights offer. The retailer has raised R4 billion in capital with a high subscription rate and overwhelming market support.
The rights offer was 106% oversubscribed, with total subscriptions reaching over R8 billion.
98.7% of shareholders followed their rights, and the group received R4.3 billion in excess applications, underscoring shareholders’ strong confidence in the group’s turnaround strategy, leadership team and future growth plans.
The proceeds of the rights offer will be used to pay down debt, stabilise the balance sheet and invest in Pick n Pay’s turnaround strategy, which CEO Sean Summers is driving at a rapid pace.
One of six strategic priorities for Pick n Pay
The recapitalisation of the business is one of six strategic priorities – aimed at revitalising and restoring profitability in its core Pick n Pay retail business while driving growth in its high-performing Boxer and Clothing businesses.
The first priority of establishing new leadership and operational structures in Pick n Pay, strengthened with seasoned executives, is already complete and the group is seeing measurable improvements in its core Pick n Pay retail business.
With the successful completion of the rights offer, the group has now completed the first step to recapitalise the business.
Step two is Boxer’s IPO, which is progressing well and is on track for a JSE listing towards the end of the year.
Pick n Pay CEO Sean Summers commented: “We are really pleased with this result. The successful conclusion of the rights offer demonstrates the market’s strong confidence in our iconic brand and in our turnaround strategy. It marks a crucial first step in our recapitalisation plan, positioning the Group well to fund long-term sustainable growth. We can now intensify our focus on our core Pick n Pay retail business. This achievement underscores our commitment to executing our strategy. We appreciate this incredible support from our shareholders.”