Pepkor acquires Shop2Shop: Clear path to unlock value with potential future Fintech listing

Research evidence excerpt

Pepkor acquires Shop2Shop: Clear path to unlock value with potential future Fintech listing

J P M O R G A N CEEMEA Equity Research

22 July 2026

Pepkor Overweight

PPHJ.J, PPH SJ

Pepkor acquires Shop2Shop: Clear path to unlock Price (21 Jul 26):2,096c

value with potential future Fintech listing Price Target (Dec-27):2,800c

Our Take: Pepkor has announced it will combine Flash—its leading value-added South African Consumer

ACservices distribution network and digital products fintech platform—with Shaun Chauke

Shop2Shop, a merchant-focused trade-enablement fintech platform spanning (27-11) 507-0735

acquiring, payments, cash management and trade services. Under the proposed shaun.chauke@jpmorgan.com

structure, PPH will acquire a controlling 57.1% stake in the combined entity J.P. Morgan Equities South Africa (Pty) Ltd.

(FintechCo), funding this through a cash injection of R1.57bn for new Shop2Shop Elena Jouronova, CFA

shares plus the contribution of 100% of its Flash shares, valued at R10.6bn. This (971) 4561-2010

elena.jouronova@jpmorgan.com

implies an equity valuation for FintechCo of ~R21.3bn. Strategically, the J.P. Morgan Securities plc

transaction is designed to accelerate PPH’s push into the informal market platform

segment, which we estimate at ~R900bn–R1.5trn. Importantly for investors,

management’s stated intention of a future listing creates a clearer pathway to Half Yearly Forecasts (FYE Sep)

crystallise value—bringing the sum-of-the-parts (SOTP) argument back into focus Adj. EPS (c)

and, in our view, improving the visibility of an eventual unlock. On pro forma 2025A 2026E 2027E

H1 83.38 92.07A 104.59

metrics, the combined business would generate roughly R20bn of revenue (Flash H2 74.97 78.41 86.96