South African retailer Pick n Pay said on Tuesday it had raised 4.7 billion rand (US$282.4 million) through the sale of part of its stake in discount grocery chain Boxer Retail, as strong investor demand boosted interest in the group’s best-performing business.
The retailer sold around 57.3 million Boxer shares, representing approximately 12.5 percent of the unit, through an accelerated bookbuild aimed at institutional investors.
The shares were priced at 82 rand each, representing a 3.2 percent premium to Boxer’s 30-day volume-weighted average price as of Monday, underscoring investor confidence in the discount retailer’s growth prospects.
Following the transaction, Pick n Pay will retain a 53.1 percent stake in Boxer, preserving majority control of the business.
The company said the proceeds from the sale would support its ongoing turnaround strategy and broader growth plans as it seeks to strengthen its balance sheet and revive its struggling core supermarket operations.
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Pick n Pay has faced mounting pressure in recent years from intense competition, weak consumer spending and operational challenges in South Africa’s retail sector.
The group listed Boxer in 2024 as part of efforts to reduce debt and unlock value from the fast-growing discount chain, which has consistently outperformed Pick n Pay’s traditional supermarket business.
Boxer has benefited from rising demand for lower-cost groceries as consumers grapple with inflation and high living costs across South Africa.
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Analysts have viewed the business as one of Pick n Pay’s strongest assets, with its expansion into lower-income and value-focused markets helping to drive sales growth even as the parent company struggled to regain market share.
The latest stake sale comes as Pick n Pay continues implementing restructuring measures aimed at restoring profitability and improving operational efficiency.
South Africa’s retail sector remains under pressure from subdued economic growth, high unemployment and persistent cost-of-living challenges, forcing many consumers to shift spending toward discount retailers and essential goods.
