Sainsbury’s shares have sunk as Qatar’s sovereign wealth fund ends its spell as the supermarket’s largest investor.
The sovereign wealth fund said that it planned to reduce its stake from its current 10.5% to 6.8%.
The move ends the shareholder’s almost 20-year run as Sainsbury’s biggest investor.
The retailer’s shares fell 4% in Wednesday (3 December) trading after the investor revealed its plans.
Related Story
The reduction means Royal Mail owner Daniel Kretinsky is set to become Sainsbury’s biggest shareholder, with a 10% holding.
Qatar Investment Authority (QIA) said after market close on Tuesday (2 December) that it planned to offload up to 98m ordinary shares in the retailer. The investor issued no reason for the sale.
It comes after Sainsbury’s recently raised its profit outlook, following a stronger-than-expected first half.
The grocery giant reported retail underlying operating profit of £504m for the six months to September 13, rising 0.2% year-on-year.
Retail sales, excluding fuel and VAT, rose 4.8% to £15.6bn, with like-for-like sales increasing 4.5%.
Click here to sign up to Retail Gazette‘s free daily email newsletter
