Czech billionaire Daniel Kretinsky has taken a major stake in Sainsbury’s, making him the fouth largest shareholder.

The billionaire investor, who is also a major shareholder in Royal Mail, now holds a 3.05% stake in the UK supermarket.

Kretinsky’s investment vehicle VESA Equity Investment disclosed its stake on Thursday and sent Sainsbury’s shares more than 3% higher. 

At Wednesday’s closing share price, Kretinsky’s 3.05% stake was worth £125m.

The billionaire has been steadily building his portfolio of investments in supermarkets across Europe, with stakes in the likes of French giant Casino and German wholesaler Metro. He also has stakes in US-based retailer Foot Locker and Macy’s. 

VESA’s investment director Branislav Miskovic said: ”We view Sainsbury’s as an attractive investment opportunity for the long run, even against the backdrop of the highly competitive UK grocery market.

“Sainsbury’s is a strong traditional brand with good locations concentrated in the Southeast of England, including London, and an attractive convenience as well as online food delivery proposition for its customers.”

Since the coronavirus lockdown began in March, grocers across the UK have seen sales soar. According to the latest Kantar market share data, grocery sales grew 10.8% in the 12 weeks to September 6.

In the same period, online food sales grew 77%, which was actually down on the previous month’s figures.