South African retail giant Pick n Pay has raised about 4.7 billion rand ($282 million) after selling part of its stake in discount grocery chain Boxer Retail, as the retailer intensifies efforts to revive its struggling core supermarket business.
Pick n Pay said it sold about 57.3 million Boxer shares, representing roughly 12.5% of the company, through an accelerated bookbuild aimed at institutional investors.
The shares were sold at 82 rand each, a 3.2% premium to Boxer’s 30-day volume-weighted average price as of Monday.
Following the transaction, Pick n Pay will retain a 53.1% stake in Boxer, down from roughly 65.6%, allowing it to remain the controlling shareholder in one of South Africa’s fastest-growing grocery retailers.
The deal underscores how heavily Pick n Pay’s turnaround now depends on Boxer, its strongest-performing and most profitable retail unit.
