UK retailer Sainsbury’s saw its share price rocket this morning (2 February) as private equity investors revealed their interest in the company.
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Shares were up 15% to 511.5 pence on the London Stock Exchange, following an announcement from private equity groups CVC, KKR and Blackstone that they “are at the preliminary stages of assessing Sainsbury”.
“Further to recent speculation, CVC, KKR and Blackstone confirm that they are at the preliminary stages of assessing Sainsbury. No decision has been made regarding the relative merits of an offer and as a consequence there can be no assurance that any offer for Sainsbury will be forthcoming. A further announcement may be made, if and when appropriate,” the firms said in a joint statement.
Analysts remain sceptical about the likelihood of an acquisition, pointing towards equity takeover talks at Dutch food group Ahold last year, which did not materialise.
Sainsbury’s stated this afternoon: “No proposal has been received. Accordingly Sainsbury’s has no further comment to make.”
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By GlobalDataToday’s news follows reports by just-food yesterday that the chain’s founding family had sold 40m shares worth approximately GBP176m (US$346.76m). The Sainsbury family sold about 2% of the company, reducing its stake to 13.89%.
The UK chain was unavailable for comment when contacted by just-food.
