Bestway increases Sainsbury’s stake to 4.47%
Bestway increases stake in Sainsbury’s – just a week after the wholesaler insisted it was not planning a takeover of the supermarket giant
- Bestway’s stake has grown from 3.45% to 4.47%, registration files show
- The group has said it could add to the stakes ‘subject to availability and price’
British wholesaler Bestway has increased its stake in supermarket giant Sainsbury’s just a week after its initial investment.
Bestway, Britain’s seventh-largest family business with a turnover of around £4.5 billion, increased its stake in Sainsbury’s from 3.45 per cent to around 4.47 per cent on Wednesday morning, according to a filing for filing.
Sainsbury’s shares were up 1 percent in early trading after adding more than 6 percent to Bestway’s initial stake last week.
Sainsbury’s said last week it would ‘enter into a partnership with Bestway Group in accordance with our normal interactions with shareholders’
Bestway told investors last week it could make further investments in Britain’s second largest supermarket, “subject to availability and price”.
However, it insisted it would not make a takeover bid.
Also operating out of Pakistan, Bestway is the UK’s second largest wholesaler and owner of the UK’s third largest pharmacy chain, Manchester-based Well Pharmacy.
It also owns Bargain Booze and Wine Rack, which it bought for £7m following the collapse of Conviviality, saving 2,000 jobs at the time.
Founded by Sir Anwar Pervez, Bestway opened its first wholesale warehouse in Acton, West London, in 1976, with new locations in the early 1980s in Southall, Hackney and Park Royal. The company eventually expanded all over the country.
The group is the UK’s second largest wholesaler and also runs the country’s third largest pharmacy chain, Well Pharmacy, based in Manchester.
In February 2021, Bestway completed the acquisition of Costcutter Supermarkets.
Sainsbury’s confirmed the initial investment last week, saying it will work with Bestway Group ‘in line with our normal interactions with shareholders’.
Sainsbury’s recently raised its profit forecast after a ‘record’ Christmas performance that came despite pressure on shoppers from the rising cost of living.
In the face of consumer tightness and the rapid growth of discounters Aldi and Lidl, Sainsbury’s has made an effort to keep its products affordable.
The supermarket has been contacted for further comment.