Costcutter owner Bestway takes 3.45% stake in Sainsbury’s

Bestway Group, the wholesale and retail conglomerate, has agreed to buy a 3.45 per cent stake in UK supermarket chain J Sainsbury and may buy more in the future.

Bestway on Friday said it had agreed to acquire more than 80mn shares in Sainsbury’s, or 3.45 per cent of its capital. The stake is worth about £193mn.

The family-backed conglomerate, which owns Costcutter convenience stores, said it would hold its shares in Sainsbury’s for investment purposes and “looks forward to supporting the executive management team”. It said it was not considering making an offer for the company.

Bestway also said it “may look” to buy more shares in the supermarket chain.

Sainsbury’s said it would engage with Bestway “in line with our normal interactions with shareholders”.

Bestway’s portfolio includes the UK’s second-largest wholesaler, pharmacy chain Well, and other businesses in Pakistan such as a cement manufacturer and a bank.