Expanding its fintech ecosystem: Pepkor Holdings Limited | Europe

Research evidence excerpt

Expanding its fintech ecosystem: Pepkor Holdings Limited | Europe

Update

July 22, 2026 08:23 AM GMT

RMB Morgan Stanley Proprietary Limited+MPepkor Holdings Limited | Europe Warwick Bam

Equity Analyst

Expanding its fintech ecosystem Warwick.Bam@rmbmorganstanley.com +27 11 587-0815

Pepkor Holdings Limited (PPHJ.J, PPH SJ)

EEMEA - Consumer & Retail | South Africa

Key Takeaways Stock Rating Overweight

Industry View In-Line

Pepkor has announced a merger between Flash and Shop2Shop. Price target ZAc 3,130

Shr price, close (Jul 21, 2026) ZAc 2,096

Pepkor will acquire a 57.1% interest in the merged entity (FintechCo) by 52-Week Range ZAc 2,831- 2,050

contributing 100% of Flash and R1.57bn in cash. Mkt cap, curr (mn) ZAR 78,308

Net debt (09/26e) (mn)* ZAR 12,096

Pepkor intends to list FintechCo in the medium term. EV, curr (mn)* ZAR 86,634

The transaction values Flash at R10.6bn and Shop2Shop at R10.7bn. * = GAAP or approximated based on GAAP

Pepkor has announced a merger between Flash and Shop2Shop, two platforms with

complementary service offerings in the informal merchant value chain. Flash

specialises in the distribution of airtime, electricity gaming, vouchers and sim cards.

Shop2Shop specialises in cash handling, merchant acquiring, payments, lending and

remittances. FintechCo will have a comprehensive suite of capabilities matching that

of Lesaka but exceeding peers such as Blue Label, iKhokha, Yoco and A2Pay.

Flash has increased its revenue by 9% CAGR over the last three years (there was a

classification change to revenue in FY22 which reduced comparability) and its

EBITDA by 28% CAGR (EBIT: +32% CAGR). Shop2Shop has expanded faster (off a

smaller base) with three-year revenue growth of 28% CAGR and EBITDA growth of

85%.