Pick n Pay raises $282 million from Boxer stake sale amid turnaround push

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 has raised about $282 million from the sale of part of its Boxer Retail stake.
• The South African retailer sold 57.3 million shares through a deal with institutional investors.
• The proceeds will support Pick n Pay’s turnaround strategy and growth plans.
• Despite the sale, the company still holds a controlling 53.1% stake in Boxer.

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.

Pick n Pay said proceeds from the transaction would be used to support its turnaround strategy and fund future growth initiatives.

The retailer listed Boxer on the Johannesburg Stock Exchange in late 2024 as part of a broader recapitalisation plan designed to reduce debt and stabilise the business after years of declining profitability in its traditional supermarket operations.

The Boxer listing was widely viewed as one of the most significant restructuring moves in South Africa’s retail sector in recent years.

Founded in 1977, Boxer has expanded rapidly across township and lower-income communities, helping it gain market share as many South Africans increasingly shift toward cheaper grocery options amid high inflation, weak economic growth and rising living costs.

The chain’s growth has become especially important for Pick n Pay at a time when the retailer faces intense competition from rivals including Shoprite, Woolworths and Spar.

Like many South African businesses, Pick n Pay has also struggled with persistent electricity shortages, logistics costs and weaker consumer spending in Africa’s most industrialised economy.

Under CEO Sean Summers, who returned to lead the retailer in 2023, Pick n Pay has been pursuing an aggressive recovery strategy focused on improving store performance, cutting costs and rebuilding investor confidence.

The latest Boxer share sale further highlights the growing importance of discount retailing in South Africa as consumers across the country continue searching for cheaper food and household products.

Despite reducing its stake, Boxer remains central to Pick n Pay’s long-term strategy and future growth plans.