Sainsbury’s has refused to be drawn on whether property magnate Robert Tchenguiz has proposed a plan to divide the company in two.
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The UK retailer declined to comment on reports that Tchenguiz – who owns a 5% stake in the company – wants to split the business into its property assets and food retailing. “We’re not going to comment on that,” a Sainsbury’s spokesman told just-food today (16 April).
Property tycoon Tchenguiz believes Sainsbury’s can gain greater value for its shareholders by unlocking the value in its property portfolio. Reports claim the retailer’s estate is worth some GBP10bn (US$19bn) – a figure the company refused to confirm or deny.
Tchenguiz is said to have put his proposal to the Sainsbury’s board after the company last week saw off a takeover attempt from a private equity consortium. The plan reportedly involves splitting Sainsbury’s into two listed companies – one running the property portfolio and the other operating the supermarkets.
Last Friday, Tchenguiz told UK newspaper The Daily Telegraph that he would look to see Sainsbury’s unlock some value from its property assets. “Sainsbury’s has GBP1.6bn of debt and a capital value of GBP10bn. In anybody’s book this is a bad capital structure,” he said. “This is a real estate company with a retail business on the side.”
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