Qatar Wealth Fund to Cut Sainsbury’s Stake After Nearly Two Decades as Top Shareholder

Qatar’s sovereign wealth fund is preparing to reduce its long-held stake in J Sainsbury, Britain’s second-largest supermarket chain, marking a significant shift in its investment position after almost 20 years. A term sheet released on Tuesday showed that the Qatar Investment Authority (QIA) plans to sell nearly 4 per cent of its holding through a secondary offering.

According to the document, shares will be offered at 317.6 pence each, with JPMorgan acting as the sole bookrunner. Sainsbury’s stock has risen 23 per cent so far this year and closed at 326 pence on Tuesday, putting the offer price slightly below the market level.

QIA first invested in Sainsbury’s in 2007, briefly building its stake to 25 per cent that same year during a period in which it weighed a possible takeover bid. The fund remained the supermarket’s largest shareholder for years but began gradually selling down its position in 2021. In October last year, it disposed of around 5 per cent of its holding through a share sale valued at nearly $400 million.

The latest planned sale is expected to raise about £265.5 million. Based on LSEG data, the transaction would reduce Qatar’s ownership from 10.48 per cent to 6.82 per cent, pushing the fund from first to fourth place among Sainsbury’s largest shareholders. Neither Sainsbury’s nor QIA responded to requests for comment.

The move comes as Sainsbury’s continues to strengthen its position in the UK grocery market. The retailer’s market share has climbed to 15.3 per cent, its highest level in almost 10 years, supported by strong performance across its food and general merchandise divisions. The company has also told investors it expects retail underlying operating profit to exceed £1 billion for the financial year ending March 2026, reflecting an improved outlook amid intense competition from rivals including Tesco, Aldi and Lidl.

Sainsbury’s closed Tuesday’s trading session with a market capitalisation of £7.44 billion, boosted by consistent sales growth and recent strategic changes aimed at improving efficiency and customer experience.

QIA’s decision to sell part of its stake signals a further step in reshaping its investment portfolio after a long association with the UK retailer, during which it played a prominent role in Sainsbury’s shareholder base and market trajectory.