Divestment: Shoprite CEO offloads R20million in retail company’s shares

*Pieter Engelbrecht, Chief Executive Officer of Shoprite, in a statement Wednesday, December 28, discloses the sale of the company’s shares is part of the retail chain’s ‘annual rebalancing of his investment portfolio’

Alexander Davis | ConsumerConnect

Pieter Engelbrecht , Chief Executive Officer (CEO) of leading retail chain Shoprite has sold R20 million (Rand: South African currency)  in the company’s shares days before this year’s Christmas.

The group in a statement issued Wednesday, December 28, 2022, disclosed the sale was part of the “annual rebalancing of his investment portfolio.”

Engelbrecht’s total pay package was R48.42m for 2022, including his salary, bonuses and share incentives.

This figure was just over a fifth more than the R39.997million he received in 2021, AFP report said.

It was learnt the Shoprite’s share price rose almost 13 percent 2022, close to the record highs last seen in 2018.

The retailer is trading at a price-earnings ratio (an indicator of how expensive its shares are) of above 20 times, somewhat pricier than its peers, according to report.

The share prices of Pick n Pay (+13%) and Woolworths (+29%) also saw gains this year.

In its most recent operational update, for the three months to September 30, the Shoprite group had reported sales growth of almost 19 percent.

Report also indicates this development was thanks to an 8.2 percent increase in the prices in its stores.

In South Africa, Shoprite reported it  had continued to win market share from its competitors, thereby extending the period of uninterrupted market share gains to 43 months.

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