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Mr Price shares fell to a new 52-week low on Wednesday as investors continued to sell the stock amid ongoing uncertainty over its proposed R9.7 billion acquisition of European value retailer NKD.<\/p>\n
The share traded as low as R162.56 at around 12:40 before recovering slightly to about R163, down 1.5% on the day. This leaves the stock more than 37% lower over the past year.<\/p>\n
Read:
Mr Price digs in on R9.7bn NKD European deal
Top shareholder publicly slams Mr Price board over R9.7bn NKD deal
Mr Price slumps amid concern over value of NKD retail purchase<\/p>\n
Mr Price was among just three stocks on the JSE to touch a 52-week low, at a time when the broader market is in the midst of a rally.<\/p>\n
Mr Price share price\u00a0<\/strong><\/p>\n Mr Price announced on 10 December 2025 that it would acquire 100% of Pegasus Group Holding GmbH, which trades as NKD Group GmbH, through an indirect wholly owned German subsidiary.<\/p>\n According to Faheema Adia, a Momentum Securities analyst, the market is concerned about the lack of detail available to judge whether the purchase price for NKD makes sense.<\/p>\n Market commentator Simon Brown discussed Mr Price with Adia on his podcast MoneywebNOW on Tuesday (13 January).<\/p>\n She says investors are struggling to make sense of the risks and potential returns of the transaction because Mr Price has provided limited financial information on the deal.<\/p>\n This has made it difficult for the market to decide whether the acquisition represents good value or is simply too expensive.<\/p>\n \u201cThe price paid was quite steep \u2026 and NKD\u2019s growth falls below the overall value segment.\u201d<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<\/blockquote>\n Moreover, Mr Price\u2019s management has previously noted that the deal is \u201cunlikely to be earnings accretive\u201d in the first year, according to Adia.<\/p>\n Sell-off deepens<\/strong><\/p>\n This uncertainty is reflected in the share price.<\/p>\n When the South African retailer announced the deal in December, the market reacted sharply, with the share falling more than 15% on the day.<\/p>\n Losses have since deepened, leaving the stock more than 5% down year to date.<\/p>\n Listen\/read: Mr Price has defended the transaction, saying it plans to host a capital markets day in the first quarter of 2026 to explain the strategic rationale, NKD\u2019s positioning and its medium to long-term prospects.<\/p>\n However, its ability to disclose more detail is currently constrained by regulatory and suspensive conditions.<\/p>\n Longer-term growth strategy<\/strong><\/p>\n Adia points out that Mr Price is taking a longer-term view, given weaker growth prospects for retailers locally.<\/p>\n \u201c[The lack of growth] forces local companies to look for growth elsewhere in higher-growth markets like central and eastern Europe, but it is about getting it right.<\/p>\n \u201cA lot of South African companies have ventured offshore and failed dismally,\u201d she says.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n A successful capital markets day could prove to be a catalyst for Mr Price\u2019s share price, offering some relief after the sharp sell-off.<\/p>\n<\/blockquote>\n But the market has not yet forgiven the company, and the share remains under pressure \u2013 not only because of the NKD deal, but also against the backdrop of a generally weak South African retail sector, Brown says.<\/p>\n While concerns have been raised about the price being paid, Mr Price has pointed out that it has a net cash position and does not intend to fund the acquisition through a rights issue, unlike Woolworths, which had to raise equity for its David Jones deal.<\/p>\n Read\/listen: The group is expected to use a portion of debt, Brown adds.<\/p>\n \u201cThe CEO has said management conducted extensive research and believes the valuation makes sense. However, the problem for investors is that there is currently too little information in the public domain to independently assess that claim.\u201d<\/p>\n Until there is greater clarity on the value Mr Price sees in the transaction, the market is likely to remain cautious.<\/p>\n That makes the upcoming capital markets day a key moment, according to Brown.\u00a0It will be closely watched.<\/p>\n \u201cThe market, however, does not like it,\u201d he adds.<\/p>\n Listen\/read: Retail review 2025: \u2018It just wasn\u2019t the year for retailers\u2019<\/p>\n Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n\n
Why the Mr Price deal sucks
Mr Price digs in on R9.7bn NKD European deal<\/p>\n\n
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