A wave of share sales by the Saltzman family, who founded Dis-Chem in 1978, raises questions about its long-term involvement in the pharmaceutical chain, even as the retailer continues to post solid financial results.
In the latest transactions, brothers Mark and Dan Saltzman sold shares worth a combined R640m in January and February. The disposals were disclosed in a regulatory announcement on Sens, but no further explanation was provided.
Just months earlier, the brothers had received a large block of shares, 217-million, valued at about R6.8bn at the time as part of a restructuring of the family’s investment vehicle, Ivlyn Local Investment Holdings. When that transfer was announced in June, the company said the shares would remain within the family and continue existing family ownership.
But the subsequent sales have made that position less clear.
Neither Mark nor Dan has held an operational or board position at Dis-Chem, and both brothers are reported to have emigrated. Their sale forms part of a broader trend of family disinvestment. Previously, their parents and official founders of the group, Ivan and Lynette Saltzman, sold shares worth about R1.4bn, significantly reducing the family’s stake. More recently, their son Saul stepped down from an executive role after nearly two decades, remaining on the board as a nonexecutive director.
Together, these developments point to a gradual shift both in ownership and in the family’s involvement in the business. The company continues to expand its store network and is now run by a professional management team led by CEO Rui Morais.
While such transactions are required to be disclosed, companies are not obliged to explain them. Still, the absence of context can leave room for speculation. That silence may not matter in isolation, but in aggregate, it starts to shape perception.
“Over the longer term, most investors may look past a short-term communication gap if the business continues to execute and management engages constructively. But in a risk-averse market, companies that are proactive and transparent around sensitive issues often earn a bit more benefit of the doubt,” said MP9 Asset Management chief investment officer Aheesh Singh.
The silence stands in contrast to recent selling at WeBuyCars, where founders Faan and Dirk van der Walt provided a detailed reasoned statement tied to portfolio diversification.
The brothers recently sold R866.4m worth of shares, their first disposal since the company was listed on the JSE in April 2024, Business Day reported.
“The disposal formed part of a considered process of portfolio management, rebalancing and diversification, particularly in light of the company’s share price performance over an extended period, which had resulted in directors’ shareholding representing a disproportionately large portion of their personal wealth,” the group said at the time.
That framing alone has helped anchor the transaction as financial planning rather than a change in conviction. While at Dis-Chem, the absence of explanations leaves room for multiple interpretations, which may include routine diversification, estate planning or a gradual dilution of long-term interest.
“The Saltzman family is not commenting on future disposals but is confident with the company’s strategy and direction. While diversification over time is a natural evolution for founders, the family’s shareholding remains significant,” Dis-Chem told Business Day on Tuesday.
Disclosure matters because founder involvement, even in a more limited role, can still influence how a company is perceived, according to analysts.
“Generally the market places a high premium on founder-led companies, and there is a lot of research that these companies outperform in terms of stock market performance. Examples of this include Capitec under its founders and Discovery, which continues to innovate and break new ground under Adrian Gore. Generally, the importance of being founder-led is more pronounced in the early days of a company, and when the company has scaled and innovation is no longer paramount, handing over to the right professional management team can be satisfactory or even sometimes optimal,” said Opportune Investment Management chief investment officer Chris Logan.
However, Singh cautioned against framing the focus purely on founder versus professional management, saying, “what should matter more for investors is stakeholder alignment, governance and depth of the management bench”.
While Dis-Chem is operationally sound the question of the family’s long-term interest in the business remains unsettled.
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