PnP ownership structure might change
Pick n Pay Stores in South Africa announced on Tuesday that it was seeking shareholder approval for a proposal to replace its current pyramid ownership structure, which was introduced in 1981 by the Ackerman family to prevent a hostile takeover.
The company said in a statement that it seeks to replace the structure, which “ensures that the founding values of the business remain in place through family control of the company”, with a simpler, more modern single share listing.
The pyramid takes the form of a dual listing on the JSE. The Ackerman family owns more than 50% of Pick n Pay Holdings, which in turns owns more than 50% of Pick n Pay Stores.
The proposal, which has been approved by both boards, would be put to a shareholder vote on 25 July.
It would collapse the pyramid by unbundling all shares in Pick n Pay Holdings with shareholders receiving shares in Pick n Pay Stores on a pro rata basis.
Pick n Pay Holdings would delist from the JSE, and would be wound up.
The Ackerman family would be allocated a new class of unlisted voting shares in Pick n Pay Stores, which would ensure that the family continued to have a controlling interest in the company.
Pick n Pay chairman Gareth Ackerman said the proposed new structure was recognised domestically and internationally and was “more appropriate in ensuring compliance with modern corporate governance standards”.
“Unbundling the pyramid will streamline the Pick n Pay Group into one listed entity, with benefits for the company and potentially for all shareholders. Over time, the simpler structure should improve Pick n Pay Stores’ appeal to investors, which could in turn help our long-term growth strategy.
Pick n Pay’s founder, Raymond Ackerman, added that the family intended to stay invested and involved in the company.
“We have a highly effective team managing the company, and our continuing involvement will ensure consistency in the company’s direction and continuity in our values,” he said.
ANA
The company said in a statement that it seeks to replace the structure, which “ensures that the founding values of the business remain in place through family control of the company”, with a simpler, more modern single share listing.
The pyramid takes the form of a dual listing on the JSE. The Ackerman family owns more than 50% of Pick n Pay Holdings, which in turns owns more than 50% of Pick n Pay Stores.
The proposal, which has been approved by both boards, would be put to a shareholder vote on 25 July.
It would collapse the pyramid by unbundling all shares in Pick n Pay Holdings with shareholders receiving shares in Pick n Pay Stores on a pro rata basis.
Pick n Pay Holdings would delist from the JSE, and would be wound up.
The Ackerman family would be allocated a new class of unlisted voting shares in Pick n Pay Stores, which would ensure that the family continued to have a controlling interest in the company.
Pick n Pay chairman Gareth Ackerman said the proposed new structure was recognised domestically and internationally and was “more appropriate in ensuring compliance with modern corporate governance standards”.
“Unbundling the pyramid will streamline the Pick n Pay Group into one listed entity, with benefits for the company and potentially for all shareholders. Over time, the simpler structure should improve Pick n Pay Stores’ appeal to investors, which could in turn help our long-term growth strategy.
Pick n Pay’s founder, Raymond Ackerman, added that the family intended to stay invested and involved in the company.
“We have a highly effective team managing the company, and our continuing involvement will ensure consistency in the company’s direction and continuity in our values,” he said.
ANA
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