Clicks store in Rosebank. The group will pay out R1.27bn in a share scheme launched in 2011. Photo: Simphiwe Mbokazi/African News Agency (ANA)
Clicks store in Rosebank. The group will pay out R1.27bn in a share scheme launched in 2011. Photo: Simphiwe Mbokazi/African News Agency (ANA)
Clicks store in Rosebank. The group will pay out R1.27bn in a share scheme launched in 2011. Photo: Simphiwe Mbokazi/African News Agency (ANA)
Clicks store in Rosebank. The group will pay out R1.27bn in a share scheme launched in 2011. Photo: Simphiwe Mbokazi/African News Agency (ANA)
DURBAN - JSE-listed retail healthcare group Clicks’ workers are set to receive a major windfall of R1.27billion after selling up to 7642904 Clicks Group ordinary shares at R166 a share.

Shares are held by 6814 employees, with black employees holding 87percent of the shares and women 64percent. Pharmacists comprise 5percent of the employee stock ownership plan (Esop) beneficiaries. Participating employees receive a cash dividend annually, equal to 10percent of the total dividend paid to ordinary shareholders each year.

The Clicks Group Employee Share Ownership Trust (Esop Trust) disposed of the shares to unwind 50percent of the scheme.

“The Esop Trust is pleased to announce that the book build has been successfully completed and that 7642904 book-build shares have been placed with 35 participating investors on behalf of the beneficiaries of the Esop Trust (beneficiaries), who elected to sell their Clicks Group ordinary shares at the book-build price of R166 a share,” the group said.

The group said the book-build price represents a discount of 3.7percent, 0.9percent and 2percent to the closing price, three-day volume weighted average price (VWAP) and 30-day VWAP on February 15 of a Clicks group share, respectively. Clicks launched the scheme in 2011, when the share price was around R44.

The group said the purpose of launching the scheme was to attract and retain scarce and critical skills, accelerate transformation, build employee commitment and enable employees to share in the growth and success of the business.

Only full-time Clicks employees were permitted to participate in the scheme, and entry into the scheme closed in 2015.

Clicks has been growing its base, and in the results for the year to end August, the group opened 111stores, including 80 through the outsourcing agreement with the Netcare Group, and expanded the store footprint to 622 outlets. The pharmacy network was increased to 473 stores.

It also increased its operating profit by 15.4percent to R1.8bn, driven by strong retail health and beauty sales, which grew by 14.7percent, while turnover increased by 10.9percent to R26.8bn. Total income increased by 12.2percent to R7.1bn.

The group indicated last year that it had set aside R680million in the 2018 financial year as capital expenditure by investing for the long-term growth of the company.

Clicks’ share price closed 3.43percent lower at R166.50 on the JSE on Friday.

- BUSINESS REPORT