Dis-Chem Top Executive Stanley Goetsch Sells Over R340m in Shares Amid Portfolio Revamp

In a high-profile stock market move, Dis-Chem Pharmacies executive director Stanley Goetsch disposed of five million shares for R178.2 million on Tuesday, a substantial transaction following his previous sale of another five million shares earlier this year, amounting to R165 million. The total value of shares he sold in 2023 amounts to a striking R343 million, according to a public announcement made by the group.

Such significant transactions signal a repositioning strategy concerning Goetsch's investments. Dis-Chem stated that the purpose behind this sale emerged from "long-term portfolio planning and diversification," although no details were provided during the initial sales.

These dealings transpired through STANSH Proprietary Limited, a venture owned by Goetsch, who joined the Dis-Chem board in 2022 after a longstanding association with the company starting in 2005. His extensive experience in pharmacy, both hands-on and in management, has been crucial to the pharmaceutical titan's operations.

This activity in the stock market is a continuation of Goetsch's habit of reducing his stake in the group since its listing. As of February 29, 2024, his holding was positioned at 39.9 million shares. Notably, he has refrained from selling shares during the 2023 and 2024 fiscal years, demonstrating a more selective approach to his divestiture strategy.

Before his latest moves, Goetsch parted with nearly seven million shares in 2022 for R242 million, further tapering his shareholding to just below 30 million. As the year progresses, the potential exercising of options could adjust that number, assuming no subsequent share sales occur.

Goetsch's current shareholding represents roughly 3.4% of Dis-Chem, marking him as a significant, although not predominant, shareholder.

This executive reshuffling occurs against the backdrop of the Saltzman founders, Ivan and Lyn, methodically reducing their majority shareholding since late 2021. They collected R1.96 billion from an accelerated bookbuild in August 2021 and facilitated a strategic management share acquisition followed by a pivotal sale to empowerment investors. Consequently, in January 2024, a sale of 50 million shares to Coronation Fund Managers significantly altered the shareholder profile, propelling Coronation as a temporarily leading stakeholder.

The stock market activities reflect the company's and its leadership's ongoing strategic and financial adjustments, showcasing Dis-Chem’s dynamic approach to corporate governance and investment strategies.