Skip to main content

Shoprite Holdings announces an R8.9 billion evergreen B-BBEE employee trust at its subsidiary Shoprite Checkers

| On the move

Shoprite Checkers will issue 40 million Shoprite Checkers shares, with an estimated value of R8.9 billion, for the benefit of its employees to recognise their valued contribution and ensure their ongoing participation in the Shoprite Group’s continued growth and success.

The Shoprite Employee Trust has been established on a non-vesting, evergreen basis which will be primarily facilitated by Shoprite Checkers on a notional basis. Employees who are employed in the Republic of South Africa (RSA), of which there are currently 126,000, will benefit directly through the Shoprite Employee Trust, as unitholders in the trust, whilst non-RSA employees, of which there are currently 16,000, will receive equivalent benefits through their respective payroll.  

Dividend entitlements are linked to a Shoprite Holdings dividend per share to ensure that the benefits which flow to employees are transparent and that employees recognise the tangible benefits of the Shoprite Group continuing to achieve strong operational and financial results. 

The transaction is in line with the Shoprite Group’s core values of recognising the valued role its employees play in the growth and success of the Shoprite Group. Furthermore, the improvement of employees’ lives is an imperative, especially in the economic context of the countries in which the Shoprite Group operates. The Shoprite Employee Trust has been established on a non-vesting, evergreen basis in order to create a long-term B-BBEE shareholder in Shoprite Checkers, for the benefit of the Shoprite Group’s employees. 

Shoprite Checkers will provide a R888 million contribution which will allow for the subscription of 10% of the shares to be held by the Shoprite Employee Trust with the balance of shares funded on a notional basis by Shoprite Checkers. Furthermore, an initial distribution of R77 million for the 6-month period to 2 January 2022 will be received by eligible RSA and non-RSA employees. The Shoprite Group anticipates the impact of the transaction on the Shoprite Group’s headline earnings to be a reduction in the region of 2.7%. This is based on the initial distribution to be paid relative to the Shoprite Group’s headline earnings from continuing operations for the 6-month period to 2 January 2022. This transaction will not have an impact on the shares in issue in Shoprite Holdings. 

The transaction is intended to retain, motivate and incentivise the employees of the Shoprite Group to continue to contribute towards its success going forward. The transaction represents a material step that has been taken in strengthening the relationship between the Shoprite Group and its employees for the benefit of the Shoprite Group.  

Related Articles

'Tis the season for on-demand shopping, now wit...

Pick n Pay asap! is feeling festive and is giving away up to R30 million to customers

Big growth for Spar’s rival to Checkers Sixty60

By: Hanno Labuschagne  - MyBroadband South African grocery retailer Spar has recorded substantial user and revenue growth for its on-demand delivery app Spar2U over the past year.

What customers want this Black Friday, with clo...

Pick n Pay launches Early Black Friday deals, more to launch next week In recent years, there has been a noticeable shift in consumer focus towards prioritising Black Friday deals on groceries, particularly meat, non-perishable pantry items, and ...

The SPAR Group set to transform KZN business wi...

The SPAR Group South Africa has appointed Damon Harry as Divisional Managing Director for SPAR KwaZulu-Natal. Harry replaces Angelo Swartz, who was recently appointed CEO for The SPAR Group.

The SPAR Group appoints retail expert Ed von Ge...

The SPAR Group has announced Ed von Gericke as the new National Retail Operations Executive for The SPAR Group Southern Africa. With his appointment, von Gericke is set to lead SPAR's journey of growth and innovation, leveraging his leadership ski...