Christoffel Wiese, a major shareholder with an 11.58% stake in Shoprite, has decided to reduce his stake in the retail giant.
- Dividend Receipt: Following the reduction, Wiese received a final dividend of R261.91 billion ($13.84 million) from his stake in Shoprite on October 2nd.
- Financial Performance: Shoprite reported a 2.8% increase in profit for the fiscal year 2023, reaching R5.9 billion ($308.55 million), despite challenging operating conditions and rising energy costs.
- Revenue Growth: The company achieved robust revenue growth with a 17.1% increase, surging from R187.53 billion ($9.8 billion) in 2022 to R219.53 billion ($11.48 billion) in 2023.
- Dividend Announcement: Shoprite’s board announced a final dividend of R4.15 ($0.217) per share, reflecting a notable 10.5% growth in full-year dividend per share.
Christoffel Wiese’s Background
- Pepkor Retail Empire: Wiese initially built his Pepkor retail empire by offering affordable prices in South Africa and later expanded its presence into other African nations.
- Steinhoff Acquisition: In 2015, Steinhoff International acquired Pepkor for $5.7 billion. However, Wiese stepped down in 2017 amid accounting irregularities, causing a decline in share prices.
- Wealth Recovery: Despite losing billionaire status, Wiese regained substantial wealth in 2022 by resolving a dispute with Steinhoff, receiving a 5% stake in Pepkor.
- Current Holdings: Wiese’s most valuable asset remains Shoprite, and he also holds stakes in Tradehold, Brait, and Invicta Holdings. His current net worth is $1.1 billion.
Christoffel Wiese’s strategic reduction in Shoprite shares and the subsequent dividend receipt align with the company’s commendable financial performance, reflecting resilience in challenging market conditions.
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What does this mean?
South African billionaire Christoffel Wiese has decided to reduce his stake in the retail giant Shoprite. Wiese, who held an 11.58% stake, received a final dividend of R261.91 billion ($13.84 million) from the reduced stake. Shoprite reported a 2.8% increase in profit for fiscal year 2023, reaching R5.9 billion ($308.55 million), and demonstrated strong revenue growth. Wiese, initially known for the Pepkor retail empire, faced challenges with Steinhoff International but regained wealth in 2022. This strategic move aligns with Shoprite’s financial success and reflects Wiese’s investment decisions in dynamic markets.