Table of Contents
Key Points
- JPMorgan repurchases $148 million worth of Clicks Group shares, increasing its stake to 6.54% after previously reducing it to 3.48%.
- Despite a 9.25% drop in Clicks Group’s share price, JPMorgan capitalized on the dip, boosting its stake value to $300.51 million.
- Clicks Group remains a dominant player in South Africa’s retail sector, with strong financial performance and 936 stores under CEO Bertina Engelbrecht.
A week after reducing its stake to 3.48 percent, JPMorgan Chase & Co. (JP Morgan), the world’s largest bank by market capitalization, has reversed course, repurchasing nearly $150 million worth of shares in Clicks Group, a South African retail and healthcare company led by Bertina Engelbrecht. This shift in strategy comes just days after a significant sell-off.
According to a regulatory filing on Jan. 31, 2025, JP Morgan spent R2.76 billion ($148.07 million) to increase its stake to 6.54 percent in Clicks Group, which is led by South African executive Bertina Engelbrecht. Clicks Group confirmed the recent acquisition, stating that JP Morgan now holds 6.54 percent of the company through nine of its subsidiaries.
The bank's latest purchase follows a stock market update from last week, which revealed that JP Morgan had sold a significant portion of its shares in Clicks, reducing its holdings from 5.96 percent to 3.48 percent with a $110 million sale on January 24, 2025. However, the latest repurchase pushes JP Morgan’s stake above its previous level, now standing at 6.54 percent.
JP Morgan reaffirms bet on Clicks Group
This back-and-forth illustrates the shifting sentiment in the investment world. JP Morgan had first increased its stake to 5.96 percent in mid-December with a purchase of R575.86 million ($31.48 million), only to scale it back to 3.48 percent weeks later. Now, with its recent acquisition, the bank appears to be showing renewed confidence in Clicks Group’s future, despite market fluctuations. This makes JP Morgan one of the largest shareholders in the company, even as other investors like Standard Bank Group have reduced their stakes.
Despite a 9.25 percent drop in Clicks Group’s share price from R373.1 ($20.07) to R338.6 ($18.21) in early 2025, the stock has since recovered to R359.6 ($19.34). By taking advantage of the dip, JP Morgan’s purchase has increased the value of its stake to R5.6 billion ($300.51 million), with Clicks’ market capitalization now hovering above $4.5 billion.
Clicks Group remains resilient in retail sector
Under Bertina Engelbrecht, Clicks Group has solidified its position as South Africa’s leading pharmacy, health, and beauty retailer. With 936 stores and 720 in-store pharmacies, the company remains a dominant force in the sector. Engelbrecht herself holds 90,068 shares valued at R35.59 million ($2 million), reflecting her commitment to the group’s success.
For the fiscal year 2024, Clicks Group reported R48.61 billion ($2.73 billion) in revenue and R20.82 billion ($1.17 billion) in total assets, further underlining the company’s strong financial standing. The flagship Clicks Pharmacy continues to drive growth, reinforcing the company’s leadership in South Africa’s healthcare retail market.
