Pick n Pay crashes on new plan to tap shareholders for billions, list Boxer

Shares in Pick n Pay crashed nearly 14% on Thursday after the embattled retailer announced a raft of proposed measures to shore up its balance sheet, including tapping shareholders for R4 billion and separately listing value chain Boxer.

The news about Boxer and the capital raise rattled the market, analysts said, with the retailer's shares down 15.7% at one point in early afternoon trade, wiping out some R2 billion in shareholder value. As of about 14:00 on Thursday, the company reduced losses a little and were down 14%, having now more than halved in the past 12 months.

Boxer has been the better-faring part of the retailer's business, while one market commentator questioned whether the Ackerman family would follow its rights in the capital raise or choose to rather dilute their interest.