Qatar’s sovereign wealth fund is set to dump a significant chunk of its stake in grocery giant Sainsbury’s, ending its nearly two decades-long run as the businesses’ largest shareholder.
On Tuesday, the Qatar Investment Authority said in a stock exchange statement it planned to sell up to 83.6 million Sainsbury’s shares to institutional investors – reducing its stake in the grocery giant from 10.5% to just under 7%.
The sale means that Czech billionaire Daniel Křetínský will leapfrog QIA to become the grocer’s largest stakeholder, with his Vesa Equity Investment vehicle holding a 10.3% stake. Bestway Group meanwhile holds a 5.3% stake in the grocer.
It comes as JPMorgan announced plans to sell a further 14 million Sainsbury’s shares in a related hedging transaction for the QIA.
QIA first bought a stake in Sainsbury’s back in 2007 and quickly built up a 25% holding which it has steadily reduced since 2021 – including the sale of a 7% stake to Křetínský.
Under chief executive Simon Roberts, Sainsbury’s has been building market share by refocusing the supermarket on its food business. The retailer recently walked away from conversations with Chinese retailer JD.com about a potential sale of general merchandise business Argos in September.
Last month, Sainsbury’s forecast full-year underlying operating profits of more than a £1bn, ahead of its market expectations.
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