LONDON, Dec 3 (Reuters) - Shares in British supermarket group Sainsbury's were down 4% on Wednesday after Qatar's sovereign wealth fund moved to offload a further chunk of its stake, ending its near
Sainsbury's Shares Decline After Qatar Reduces Stake
LONDON, Dec 3 (Reuters) - Shares in British supermarket group Sainsbury's were down 4% on Wednesday after Qatar's sovereign wealth fund moved to offload a further chunk of its stake, ending its near two-decade reign as the largest shareholder.
The Qatar Investment Authority said late on Tuesday it planned to sell up to 83.6 million shares in the grocer through a placing to institutional investors, reducing its stake to 6.82% from 10.48%, according to LSEG data.
With the placing priced at 317.6 pence a share, QIA would raise 265.5 million pounds ($352 million).
FUND STILL CONFIDENT IN SAINSBURY'S MANAGEMENT, SOURCE SAYS
A source familiar with the matter said the disposal was part of the QIA's normal portfolio management, and it still had confidence in Sainsbury's management. Sainsbury's did not respond to a request for comment.
Prior to Wednesday, shares in Sainsbury's had risen 23% this year.
Shares in Britain's other listed food retailers, industry leader Tesco, Marks & Spencer and Ocado were down 1% to 2% in sympathy.
Last month Sainsbury's shares hit a five-year high of 349 pence after the group raised its full-year profit outlook, prompting property director Patrick Dunne, chief commercial director Rhian Bartlett and finance chief Blathnaid Bergin to sell some of their shares.
BILLIONAIRE KRETINSKY NOW LARGEST SAINSBURY'S SHAREHOLDER
QIA has been a Sainsbury's shareholder since 2007. That year its holding peaked at 25%, and it abandoned a potential bid.
It started selling its shares in the group in 2021 and last cut its stake in October 2024, reducing its holding by about 5% and raising about $400 million.
QIA's remaining shares will be subject to a 90-day lock-up.
Its latest disposal means Czech billionaire Daniel Kretinsky, whose Vesa Equity Investment vehicle owns 10.3%, will become Sainsbury's largest shareholder.
($1 = 0.7544 pounds)
(Reporting by Kanjyik Ghosh in Barcelona and Anousha Sakoui and James Davey in London; Additional reporting by Rishabh Jaiswal in Bengaluru; Editing by Jan Harvey)
