Convenience-store operator and wholesaler Bestway Group has raised its stake in J Sainsbury Plc as speculation swirls about the future ownership of the UK’s second-largest supermarket.
Bestway now holds 4.47 per cent of Sainsbury, up from 3.45 per cent last week, according to a filing Wednesday, Bloomberg reported. It had put the total number of shares at 80.8 million, while the filing on Wednesday showed the total held by Bestway at 104.8 million.
Bestway is Sainsbury’s third largest shareholder.
The family-owned business previously said that it intended to increase the holding, though it will own the shares for investment purposes and isn’t considering making an offer for Sainsbury.
“Bestway Group intends to hold its shares in Sainsbury’s for investment purposes and looks forward to supporting the executive management team,” Bestway said at the time.
Sainsbury said last week that it will engage with Bestway like any other shareholder. The shares rose less than one per cent in London trading Wednesday.
Bestway has operations across the UK, Pakistan and the Middle East. It is the largest independent wholesale operator in Britain, selling food, drink, tobacco and household goods to 130,000 retailers. It also has interests across the pharmacy, real estate, cement and banking sectors and runs well-known convenience brands including Costcutter and Bargain Booze.
The group has expanded through a number of major acquisitions including Costcutter and the Well Pharmacy group.
Bestway was founded by Sir Anwar from a single corner shop in Earls Court in 1963 before branching out into wholesaling when his suppliers demanded better terms. In 1976, Bestway Wholesale was born, with a depot in Acton, west London.
Its first overseas investment was the acquisition of a rice mill in Pakistan run by Younus Sheikh, who became chair of Bestway Wholesale.
Further business ventures included the creation of a cement manufacturing business in Pakistan, Bestway Cement, one of the country’s largest, while the group also took a strategic stake in one of Pakistan’s biggest banks, United Bank Limited.
With annual turnover of approximately £4.5 billion and 28,000 staff worldwide, it is the seventh largest family-owned company in the UK and has amassed a cash pile of £1.8bn, The Telegraph reported.