2 weeks Ago By Reuters
Home | South Africa’s Pick n Pay to exit Nigeria South African grocery retailer Pick n Pay will exit Nigeria by selling its 51% share of a joint venture as part of plans to restructure outside of its home market, CEO Sean Summers said today. The retailer has two stores in Nigeria, having entered the market there less than five years ago through a partnership with A.G.
Leventis (Nigeria). Meanwhile, Pick n Pay which is listing its discount grocery chain Boxer in Johannesburg through an initial public offering, said today that the base size of the IPO would be towards the upper end of its guidance. Pick n Pay previously said proceeds from the IPO could be between R6 billion and R8 billion ($339 million and $452 million).
The retailer said in a statement that the Boxer IPO would include an overallotment option, which was not expected to exceed 500 million rand and would be settled through the issuance of new shares. An overallotment option grants the underwriter the right to sell more shares than originally planned if demand proves higher than expected. It provides price stability.
The IPO is part of Pick n Pay’s two-step recapitalisation plan for much-needed cash to lower its debt and fix its loss-making core Pick n Pay supermarkets business. The group also wants Boxer to be accorded a market value that appropriately reflects its “superior” growth and return on invested capital. SABC © 2024.
