Sainsburys’ biggest shareholder – the Qatar Investment Authority (QIA) – is selling £306 million worth of shares in the group, reducing its holding by 5%.
Shares in Britain’s number two supermarket group, which has an over 15% share of the UK grocery market after only Tesco, were down nearly 5% on Friday.
Regulatory filings show QIA offered £109.4 million shares at a price of 280 pence with Goldman Sachs as the sole bookrunner.
Prior to the offer, QIA had a 14.2% stake in Sainsburys, according to data from the London Stock Exchange Group.
Sainsburys stock closed on Thursday at 288 pence, up 12% over the last year.
Monthly industry data has shown that the retailer’s food business is performing well.
However, it also showed that its non-food business – which makes up a quarter of its sales – has been affected by UK shoppers’ reluctance to spend on discretionary items.
A spokesperson for Sainsburys declined to comment on QIA’s move, while QIA did not immediately respond to a request for comment.
Qatar’s sovereign wealth fund has been a Sainsburys shareholder since 2007.
That year, its holding peaked at 25% and it abandoned a potential bid. It started selling in 2021.
Analysts at JP Morgan Cazenove said, ‘Given the strategic structure of the shareholder, we do not see it (the share disposal) being necessarily linked to upcoming events.’
The analysts also noted the British government’s upcoming budget statement on 30 October and Sainsburys’ interim results on 7 November.
QIA’s other high-profile UK investments include a stake at Barclays Bank and London department store Harrods.
Read More: UK Grocery Inflation Edges Higher – Kantar
