Sainsbury’s shares rose 4.5% on Friday, the highest since April, and leading the FTSE 100 Index.
LONDON — Costcutter’s retail group Bestway is acquiring a 3.45 percent stake in Sainsbury’s, calling it an investment rather than a takeover bid for Britain’s second-largest supermarket group.
Sainsbury’s shares rose 4.5% on Friday, the highest since April, and leading the FTSE 100 Index.
Bestway, which bills itself as Britain’s seventh-largest family business with sales of around £4.5 billion ($5.57 billion), said it plans to retain a stake and looks forward to the support of Sainsbury’s management.
He took the unusual step of asking Sainsbury’s institutional shareholders who wish to sell shares to him to contact Redburn, the intermediary.
Sainsbury’s, which announced higher-than-expected Christmas deals earlier this month, said it would work with Bestway following its usual shareholder engagement.
According to Refinitiv Eikon, his 3.45% stake makes Bestway Sainsbury’s sixth largest investor.
Qatar Investment Authority (QIA) is the largest at 14.3%. The second largest is Vesa Equity Investment, a company owned by Czech billionaire Daniel Kretinsky, which owns 10%.
Vesa declined to comment on the development, and QIA did not immediately respond to a request for comment.
According to Bestway, under UK takeover rules, the company won’t bid for Sainsbury’s for six months unless another group submits a bid.
Sainsbury’s, which announced higher-than-expected Christmas deals earlier this month, said it would work with Bestway following its usual shareholder engagement.
wholesaler
Bestway started as a grocery store chain in 1963 and has grown into a multinational with interests in wholesale, pharmaceuticals, real estate, cement, and banking. The company employs over 28,000 people in the UK, Pakistan, and the Middle East.
Russ Mold, chief investment officer at AJ Bell, said a merger of the two companies made sense, suggesting that Tesco’s acquisition would make Booker’s 2018 best seller.
amount of stock to become a member of the board of directors.” That he can push his seat at the table. . . . . .
“A substantial contribution to the company suggests that you are serious about working together.”
Bestway, the owner of Costcutter, acquires a 3.45% stake in Sainsbury’s.
Wholesalers and retailers say they may want to buy more stock from the UK supermarket chain.
Wholesale and retail group Bestway Group has agreed to buy a 3.45 percent stake in British supermarket chain J Sainsbury’s and may buy more in the future.
Bestway announced on Friday that it had agreed to purchase more than 80 million shares of Sainsbury or 3.45 percent of its capital. The investment is approximately £193 million (€219 million).
The family conglomerate, owner of the Costcutter department store, owns a stake in Sainsbury’s for investment purposes and says it “wants to help run it.” He said the company’s offer was not being considered.
Bestway said it would “consider” buying a larger stake in the supermarket chain.
Costcutter owner Bestway has bought a £200m stake in Sainsbury’s.
He said he was not considering a takeover bid from Sainsbury’s, a statement that would bar such a move for six months unless there was a competing offer, under the group’s takeover rules.
This decision makes Bestway Sainsbury’s sixth largest shareholder.
In addition to the wholesale business, Bestway owns Well Pharmacy, the third largest pharmacy chain in the UK, and over 2,700 convenience stores under the Costcutter and Best-one brands.
Bestway did not reveal the amount paid for the bet. However, with Sainsbury’s closing price of 239.4p on Thursday, the bet is worth £193million.
Sainsbury’s shares rose 4.5% on Friday to 250 pence, putting the company at the top of the FTSE 100.
In a statement, Sainsbury’s stated that it “will engage with Bestway Group following our normal stakeholder engagement.”
Shore Capital analyst Clive Black said it was unclear whether Bestway had the “credibility or the resources” to buy Sainsbury’s or, as a large grocery store and drugstore, wanted to “work with Sainsbury’s in terms of marketing”.
Black said he was particularly taken aback by the suggestion that Bestway might be interested in buying more Sainsbury’s shares.”It’s the first time I’ve seen anything like it in a long time.
Independent retail analyst Maureen Hinton said Bestway’s involvement could play a vital role in future Sainsbury’s Pharmacy talks aftermarket partner Lloyds Pharmacy today announced plans to close the 237 stores.
Bestway discussed buying Sainsbury’s before placing bids.
Ten months ago, Bestway CEO Dawood Pervez, the son of the company’s founder, was approached to buy Sainsbury’s.
Costcutter founder Colin Graves told The Telegraph that he and Pervez discussed the supermarket attack last year.
he said:
“I told him the easiest answer was to go and take Sainsbury’s soldiers and combine the two groups. Now it looks like Bestway has taken my advice.”
Whole Sale Group fell 3.45% last week, with Sainsbury’s valued at £193 million, but has denied any takeover bid.
However, Redburn may notify the sales representative that additional parts may be purchased at a later time.
“I told him the easiest answer was to go and take Sainsbury’s soldiers and combine the two groups. Now it looks like Bestway has taken my advice.”
Sainsbury’s shares were up 6.6% when Bestway’s investment was announced.
According to the retailer, it will “engage with Bestway Group under its standard customer relations.”
Sainsbury’s recently entered the UK supermarket market through acquisitions.
The billionaire Issa brothers acquired Asda through TDR Capital in 2020 and US private equity firm Clayton, Dubilier & Rice Morrisons in 2021.
The Sunday Times reports that private equity firm Apollo Global Management considered buying Sainsbury’s last year but decided against it as the market was hit hard by Russia’s invasion of Ukraine.
Dowd’s father, Sir Anwar Pervez, founded Bestway in 1976. Starting as a department store, the group now owns a grocery store, pharmacy, real estate, cement, and a £4.5 million mortgage.
The billionaire Issa brothers acquired Asda through TDR Capital in 2020 and US private equity firm Clayton, Dubilier & Rice Morrisons in 2021.
The Sunday Times reports that private equity firm Apollo Global
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