Sainsbury’s stock soars as share stake speaks volumes
A massive investment by Three Delta, the investment group, has sent Sainbury’s shares soaring as it has purchased 14% of the retailer with a £1.5bn bid for a block of shares.
Three Delta has ties to entrepreneurs and brothers Robert and Vincent Tchenguiz, with Robert already owning 5% of the supermarket. He believes the company should be split into two – the retail supermarket arm and a property firm.
“The Tchenguiz brothers are serious players on the world investment stage and the board of Sainsbury’s can expect some heavy pressure to do what these powerful shareholders want,” said City analyst Colin Perry.
“Just when Sainsbury’s thought the pressure was off after the recent failed private equity bid, this comes along to represent a new challenge and a possible new direction for the company, as Robert Tchenguiz does exert formidable muscle.”
Perry added: “The money for the deal – £1.5bn – has come from Qatar and the Middle East states have billions in their kitty for this sort of deal at the moment. Although it is a huge sum of money it is well within their means to afford it.”