Qatar's sovereign wealth fund is preparing to reduce its stake in J Sainsbury's by nearly four percentage points, marking the end of a nearly two-decade run at the top of the shareholding structure of Britain's second-largest retail group. According to a term sheet released Tuesday, Qatar Investment Authority (QIA) will offer a tranche of shares at 317,6 pence per share in a secondary offering managed by JPMorgan.
The decision comes after a strong stock market performance for Sainsbury's, which has gained 23% since the beginning of the year, closing at 326 pence on Tuesday. QIA, a shareholder since 2007, had reached a peak of 25% at the time, even considering a formal bid for the chain, which was later abandoned. The gradual decline began in 2021 and reached a significant milestone last October, when the fund sold approximately 5% of its capital for nearly $400 million.
The current deal, valued at approximately £265,5 million, will increase Qatar's stake to 6,82% from 10,48%, according to LSEG data, causing it to slip from first to fourth place among the retailer's shareholders. At market opening, Sainsbury's shares turned negative, losing about 4% following news of the new offering.
The change in ownership favors the rise of Czech billionaire Daniel Křetínský, whose Vesa Equity Investment now holds a 10,3% stake, becoming the company's largest shareholder. This transformation comes amid strong operating momentum for Sainsbury's, which has increased its UK market share to 15,3%—its highest level in a decade—and expects to exceed £1 billion in retail operating profit for the financial year ending March 2026. Market capitalization stands at £7,44 billion.
According to analysts, the Qatari fund's choice may reflect a desire to reduce exposure following the stock's strong performance. The current competitive environment remains fierce: the dynamism of discount retailers Aldi and Lidl, Asda's recovery after a difficult few years, and Tesco's consolidated leadership pose significant challenges to further gains in share. In this environment, Sainsbury's strategic transformation has produced tangible results, but consolidating new levels of growth could prove more complex.
