Sainsbury’s Shares Drop as Major Shareholder Reduces Stake – Report

Shares of Sainsbury experienced a decline on Friday following news that the Qatar Investment Authority (QIA), the company’s largest shareholder, was selling £306 million worth of shares, as indicated by regulatory filings.

As of 4:27 am (0827 GMT), Sainsbury’s shares were trading down 4.7% at £274.40. The filings reveal that QIA offered 109.4 million shares at 280 pence each, which constitutes approximately 5% of its stake. Prior to this sale, QIA owned a 14.2% share in Sainsbury.

Sainsbury, which commands over 15% of the UK grocery market, is second only to Tesco, based on monthly industry data reflecting its robust performance.

The Qatar sovereign wealth fund has been a stakeholder in Sainsbury since 2007, when its ownership reached a peak of 25%. However, it later moved away from a potential acquisition and has been reducing its stake since 2021.

In addition to its interests in Sainsbury, QIA has made significant investments in the UK, including a stake in Barclays Bank and ownership of the iconic London department store, Harrods.