Bestway boosts Sainsbury’s stake – just a week after the wholesaler insisted it was not planning a takeover of the supermarket giant
- Bestway stake increased from 3.45% to 4.47%, according to regulatory filings
- The group said it could add to the attendance “subject to availability and price”
British wholesaler Bestway has increased its stake in supermarket giant Sainsbury’s, just a week after making its initial investment.
Bestway, which is Britain’s seventh largest family business with a turnover of around £4.5billion, increased its stake in Sainsbury’s from 3.45% to around 4.47% on Wednesday morning , reveals a regulatory filing.
Sainsbury’s shares were up 1% in early trading, after adding more than 6% on the back of Bestway’s initial stake last week.
Sainsbury’s said last week it would ‘engage with Bestway Group in line with our normal interactions with shareholders’
Bestway told investors last week it could invest more in Britain’s second-largest supermarket, “subject to availability and price”.
However, he insisted he would not make a takeover bid.
Bestway, which also operates out of Pakistan, is Britain’s second-largest wholesaler and owns the UK’s third-largest pharmacy chain, Manchester-based Well Pharmacy.
He also owns Bargain Booze and Wine Rack, which he bought for £7m following Conviviality’s collapse, 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 launched in the early 1980s in Southall, Hackney and Park Royal. The business eventually expanded across 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 its acquisition of Costcutter Supermarkets.
Sainsbury’s last week acknowledged the initial investment and said it would ‘engage with Bestway Group in line with our normal interactions with shareholders’.
Sainsbury’s recently raised its profit forecast after a “record” Christmas performance despite pressure on shoppers from the rising cost of living.
In the face of consumer pressure and rapid growth from discounters Aldi and Lidl, Sainsbury’s has struggled to keep its products affordable.
The supermarket has been contacted for further comment.
