Wholesale group Bestway announced it has taken a 3.45% stake in Sainsbury's (LON: SBRY), the company announced Friday.
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The Costcutter and Well Pharmacy owner has acquired over 80.7 million shares in the supermarket giant. According to Sainsbury's share price close on Thursday, the stake is said to be worth over £193 million.
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Bestway said it intends to hold the shares in Sainsbury's for investment purposes and may look to make further purchases of Sainsbury's shares from time to time.
Sainsbury's shares jumped more than 5% on the news.
Bestway also confirmed that it is not considering an offer for Sainsbury's, something the supermarket itself acknowledged when it released a statement on Friday. However, it has the right to make an offer if Sainsbury's agrees or if another business puts a deal on the table.
In its response, Sainsbury's said it has noted the announcement made by Bestway Group stating that it is not considering an offer for the company.
“We will engage with Bestway Group in line with our normal interactions with shareholders,” Sainsbury's said.
Qatar Investment Authority is already a major shareholder in Sainsbury's, with an over 14% share in the supermarket chain.
Following Sainsbury's record sales over Christmas, JPMorgan analyst Borja Olcese raised the firm's price target on J Sainsbury to 213p from 206p, while Morgan Stanley analyst Izabel Dobreva raised the price target on the stock to 228p from 220p.
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