You are in > manchester.com  > News > Royal buy-in pushes Sainsbury's shares upwards

Business

Royal buy-in pushes Sainsbury's shares upwards

15/06/2007

Shares in J Sainsbury rose five per cent after the Qatari royal family increased its stake in the supermarket chain.

Investment vehicle Delta (Two) announced this morning it has acquired 123 million ordinary shares at 595 pence per share in the retailer.

This increases its share in the company by 7.068 per cent to 25.008 per cent when taken together with 300,000 shares personally held by Sheikh Hamad bin Jassim bin Jaber Al Thani, it added.

Sainsbury shares have climbed gradually in the last 12 months, although uncertainty over a potential £10.1 billion takeover bid from a private equity consortium led by CVC Capital Partners led to jitters earlier this year.

Commentators say the Delta group's increased stake will strengthen calls for Sainsbury to split itself into retail and property arms, realising the capital held by its property assets.

Delta has links to Iranian-born billionaire Robert Tchenguiz, who holds a five per cent Sainsbury's stake and has made clear in the past his determination to open up the company's property portfolio to shareholders.

© Adfero Ltd