PIC quietly builds bigger Famous Brands stake

Famous Brands’ share buyback programme is unfolding alongside a shift in its shareholder base, with the Public Investment Corporation (PIC) increasing its stake to 15.02%.

The PIC’s share purchase comes as Famous Brands repurchases up to 5% of its issued share capital between 1 February 2026 and 31 May 2026.

Famous Brands owns several of South Africa’s best-known quick service and casual dining chains, including Steers, Wimpy, Debonairs Pizza and Fishaways, alongside a portfolio of logistics and manufacturing operations that supply its restaurant network.

Although buybacks are primarily used to return value to shareholders, they also reduce the number of shares available in the market.

When this happens, existing investors can end up with a larger slice of the pie even if they are not actively buying large volumes of additional shares.

Famous Brands’ stock was 0.35% down in early afternoon trading at R56.49. Over five years, the stock is up 19.56%.

By comparison, the JSE’s All Share Index – which hit a record high on 6 January – is up almost 80% over the same period.

Famous Brands previously reported in its integrated annual report that the PIC held about 10.19% of its issued shares, according to shareholder analysis data published in February 2025.

At the time, Camissa Asset Managers was the largest fund manager shareholder at 16.10%, followed by the Public Investment Corporation and 36One Asset Management at 8.32%.

The same disclosure showed that the Government Employees Pension Fund (GEPF) held a separate direct and indirect beneficial interest of 15.07%.

While the PIC and the Government Employees Pension Fund are separate entities, the PIC invests on behalf of the GEPF. The PIC is the largest asset manager in Africa, managing more than R3 trillion in assets.

For comparative purposes, South Africa’s gross domestic product is about R7.7 trillion.

The buyback follows a period in which the company focused on strengthening its balance sheet, including reducing debt and improving cash flow.

Companies typically initiate buybacks when they believe their shares are undervalued or when they have surplus cash after meeting operational and strategic needs.

The Public Investment Corporation’s move above the 15% disclosure threshold places it among Famous Brands’ largest shareholders. Crossing this level requires regulatory disclosure but does not signal a change in control.

IOL