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-owned business with turnover of around £4.5billion, has hiked its Sainsbury’s stake from 3.45 per cent to approximately 4.47 per cent as of Wednesday morning, a regulatory filing reveals.
Sainsbury’s shares were up 1 per cent in early trading, having added more than 6 per cent 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 make further investments in Britain’s second biggest supermarket, ‘subject to availability and price’.
However, it insisted it would not make a takeover offer.
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.
It also owns Bargain Booze and Wine Rack, which it bought for £7million following the following the collapse of Conviviality, 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 firm eventually expanded around 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 will ‘engage with Bestway Group in line with our normal interactions with shareholders’.
Sainsbury’s recently lifted its profit forecast after a ‘record’ Christmas performance that came despite pressure on shoppers from the rising cost of living.
Up against squeezed consumers and the rapid growth of discounters Aldi and Lidl, Sainsbury’s has made efforts to keep its products affordable.
The supermarket has been contacted for further comment.
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