Takeover speculation surrounding the UK supermarket chain Sainsbury’s has continued with the news that Iranian property tycoon Robert Tchenguiz has increased his stake in the retailer, acquiring a further 70m shares.
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According to a report in The Times, this increases Tchenguiz’ stake in Sainsbury’s from 3.95% to 4.04%
Tchenguiz is reported to have paid an average of around GBP5.30 (US$10.38) for his shares, and market sources have suggested he is speculating that a private consortium led by the CVC group will table a bid for at least GBP5.50. The consortium is currently in negotiations with Sainsbury’s advisors regarding a possible takeover.
Another theory being posited is that Tchenguiz is hoping to use his stake to help to negotiate a deal with Sainsbury’s which would see him help the retailer set up a separate property company to handle its freehold assets.
A key part of the negotiations between the CVC-led consortium and the retailer is the settlement of the Sainsbury’s pension fund deficit. The consortium is currently awaiting a response from the trustees of the Sainsbury’s pension fund to a proposal to make a one-off lump sum payment into the fund and then clear the remaining deficit, which was last valued at GBP477m. The trustees are expected not to respond to this proposal until the end of the week at the earliest.
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By GlobalDataOther bidders for Sainsbury’s wait in the wings, reportedly including a consortium led by US private equity firm Bain Capital.
