Dis-Chem founder Ivan Saltzman has distributed the lion’s share of his equity in the group to two of his sons, Dan and Mark.
Saltzman is winding down his illustrious career and preparing the next generation of the family to be significant shareholders of his R27bn group for years to come.
The company on Friday said Saltzman had distributed about 217-million shares worth R6.8bn to Dan and Mark, through Ivlyn Local Investment Holdings (Ivlyn).
After the distribution Ivlyn will be left with a 4.06% interest in the group, substantially down from the 29.31% it held before the transaction.
“All distributed shares will remain within the Saltzman family, thereby continuing current family ownership. The transaction will not affect the liquidity of the company’s shares traded on the JSE,” the company said in a regulatory filing.
“Mr Dan Saltzman and Mr Mark Saltzman individually now own a beneficial interest in the company of 12.62% (previously 0.00%).”
Dan and Mark do not sit on the group’s board, nor do they serve in any executive positions, with their new shareholding likely to see a board reshuffle.
Saltzman’s third son, Saul, has been with the group for two decades and serves as one of the executive directors alongside his father.
Saul, who already had shares in the group, has 20 years of experience in the retail pharmaceutical industry, all of which have been at Dis-Chem, and has performed many roles in the business, including heading the import division and focusing on the group’s private label strategy.
The business was founded by Saltzman and his wife Lynette in 1978 and listed on the JSE in 2016.
The family introduced the concept of a discount pharmacy with product categories not previously offered in SA pharmacies.
Saltzman last year sold R1.4bn of his shares in the company in a deal that reduced the family’s stake in the business to 29.31% from 35.12%. Saul sold R87.9m of shares.
The Saltzmans, with other directors and prescribed officers at the group, last week sold their head office and Midrand distribution centre to the group in a transaction valued at nearly R500m.
Money manager Coronation last year took a commanding position in Dis-Chem, with the firm now owning nearly 30% of the group’s stock after the transaction. The Cape Town-based asset manager held 24.3% of Dis-Chem before the deal.
The 75-year old Saltzman stepped down as the group’s CEO in June 2023, handing the reins to Rui Morais, the group’s former CFO. Saltzman retained his seat on the group’s executive team and board.
As part of the transition, Saltzman divested 3.75% of Dis-Chem’s issued share capital, owned by his family, to Morais and a group of key senior executives to ensure “their ongoing commitment”.
In an interview with Business Day last year, Saltzman said listing the company in 2016, shortly after opening their 100th store, was a proud moment.
“Dis-Chem’s listing in 2016 stands out as the key highlight of my career. The listing was vastly oversubscribed as Dis-Chem was already a well-known retail brand with much consumer and customer loyalty. There was strong institutional investor uptake, and the market was confident and positive,” he said.
“At the time I said that the listing would allow us to advance and improve our strategy to ensure that we could continue growing market share across our product offerings, as well as build on our established brand positioning. If I look back, that’s exactly what we have done.”
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