South Africa’s affluent Ackerman family has seen their fortune increase even more as the market value of their investment in Pick & Pay, a leading retail firm, has rebounded.
The Ackerman family’s share in Pick n Pay has increased by R199.48 million ($10.97 million) in the last 34 days. The boost comes as Pick n Pay’s shares on the Johannesburg Stock Exchange (JSE) recover from recent losses.
Between March 15 and April 9, the retailer’s shareholding increased from R2.09 billion ($112.96 million) to 2.43 billion rand ($131.50 million), resulting in a huge $18.5 million gain.
Pick ‘n Pay, founded in 1967, is a market leader in Africa’s retail industry, with more than 2,000 outlets in eight African countries. It is South Africa’s second-largest grocer, after Shoprite, which is partially owned by billionaire Christo Wiese.
Over the last 34 days, Pick ‘n Pay shares on the JSE have increased by 8.47 percent, from R18.88 ($1.037) on April 17 to R20.48 ($1.12). This spike has again lifted its market value above $550 million, resulting in significant returns for stockholders.
The Ackerman family presently owns 25.53 percent of Pick n Pay, which equates to 124,677,238 shares. With the latest share price gain, the market value of the family’s holding has increased by R199.48 million ($10.97 million) in the last 34 days.
Their shareholding increased from R2.35 billion ($129.45 million) on April 17 to R2.55 billion ($140.42 million). This reinforces the Ackerman family’s position as one of the JSE’s wealthiest investors and highlights their importance in South Africa’s commercial environment.
While Pick n Pay shares have recently rebounded, it’s worth noting that the stock is down more than 12% year to date, ranking among the poorest performers on the JSE.
Investors seeking to replicate billionaires’ wealth-building tactics by investing in publicly traded companies should be wary of Pick n Pay’s recent troubles. The store may need to raise up to R4 billion ($210 million) from investors in a rights offering by mid-year to stabilize operations.
Pick & Pay’s shares on the JSE have decreased by more than 12.07 percent since the beginning of the year, resulting in investor losses. A $100,000 investment in Pick n Pay would now be worth $87,930, a loss of $12,070.
