Bestway boosts stake in Sainsbury’s to more than 4%

Bestway Group has increased its stake in Sainsbury’s to 4.47%, making it the supermarket’s fifth-largest shareholder.

The move comes just days after the retail and wholesale group – which also owns the Costcutter, Well Pharmacy and Bargain Booze retail chains – purchased a 3.5% stake in the UK’s second largest supermarket.

In doing so, the group described the initial move as “an investment”, adding that a takeover is not on the cards, as “it is not considering an offer” for the supermarket giant.

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Bestway did state that it may look to purchase more Sainsbury’s shares “from time to time”, subject to both availability and price.

Shore Capital analyst Clive Black said at the time that it “remains to be seen” if the move is “a pre-cursor to greater ownership aspirations or a route to try and collaborate with Sainsbury’s from a trading perspective”.

He added that the move was likely to spark some conversations around both “Sainsbury’s and the wider sector with respect to corporate activity and equity values”.

The group’s initial statement ruling out a bid means it is unable to try for takeover for at least the next six months, unless a rival bid emerges in the meantime.

Some analysts believe Bestway may be looking to leverage its stake in Sainsbury’s into a wider collaboration across its wholesale business or pharmacy concessions, following the news that LLoydsPharmacy would be closing all 237 of its Sainsbury’s branches.

Shares in the supermarket were up 0.5% in midday trading today, extending gains over the last month to 21%.

Following today’s announcement, Sainsbury’s reiterated last week’s statement that it will “engage with Bestway Group in line with our normal interactions with shareholders”.



1 Comment. Leave new

  • Leslie Clive Bedford.
    February 2, 2023 12:12 pm

    Isn’t there a % threshold that companies buying into other companies.That the company buying shares in another company have to make an offer to buy the other %.


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