JOHANNESBURG - Investors aren't happy with Pick n Pay's decision to sell a slice of Boxer.
Pick n Pay is struggling to turn around its fortunes. Meanwhile it's subsidiary, discount retailer Boxer, is flying.
To unlock some cash for it's turnaround strategy, Pick n Pay announced on Tuesday it would sell a further 11.5 percent stake in Boxer, valued at nearly R5 billion.
Pick n Pay sold 57.3 million Boxer shares, cutting its stake to just over 53 percent, while retaining control.
The group says the proceeds will be used to strengthen its recovery plan after a difficult period that saw it lose market share and post heavy losses.
The retailer says its focus on upgrading its product offering and cutting underperforming outlets is driving better sales.
Meanwhile, Boxer continues to outperform, with rapid store expansion and strong growth.
Both Pick n Pay and Boxer shares fell today with concerns raised about the possibility that a good investment is being used to try and save a poorer one.