Pick n Pay shareholders approve deal to collapse pyramid structure

Grocery chain Pick n Pay gained shareholder approval for a deal allowing the Ackerman family to retain control while collapsing the pyramid structure.

But moderate shareholder disapproval was registered at its annual general meeting, with 17.6% of Pick n Pay Stores shares voting against the deal. Only 0.01% of shares voted were abstentions.

All resolutions were passed by the requisite number of shareholders at the meeting, allowing the group to proceed with de-listing Pick n Pay Holdings.

This means the 53% of Pick n Pay Stores the holding company owns will be unbundled to its shareholders.

Under the deal the Ackerman family, who maintained control of Pick n Pay Stores by owning 53% of Pick n Pay Holdings, will receive newly created B shares, which receive no dividends but enable them to continue having 53% of the group’s voting rights.

Though the Ackerman family was not permitted to vote their shares at the meeting, at the holding company level the deal received 99.16% approval with only 0.84% of shares voted against and 0.11% abstaining.