Talks between the Sainsbury’s board and Delta Two, the Qatar-backed investment fund interested in buying the company, are set to continue this week.
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Discussions will rumble on over Delta Two’s proposal to buy the UK retailer for GBP10.6bn (US$21.8bn), plans made public last week.
Delta Two, the largest shareholder in Sainsbury’s with a 25% stake, has yet to decide whether to launch a formal bid for Sainsbury’s and has already held talks with Sainsbury’s chairman Philip Hampton and the Sainsbury family.
The Sainsbury family, which owns 18% of the retailer, is believed to be opposed to Delta Two’s plans. A trade union representing some 20,000 Sainsbury’s workers has been vocal in its opposition to a takeover by the fund.
Delta Two has said it would fund the offer with an investment of GBP4.6bn in equity and shares. It plans to fund the balance through securing debt finance of some GBP6bn.
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By GlobalDataDelta Two plans to spend a further GBP3.5bn over the next five years to fund store expansion, refurbishment and to extend Sainsbury’s no-food business.
Over the weekend, it emerged that Delta Two has lined up former Asda director Tony Campbell to chair Sainsbury’s if it proceeds with a successful bid.
Sainsbury’s declined to comment on the situation while officials representing Delta Two could not be reached for comment as just-food went to press.
