In a major U.K. retail deal, Bestway has taken a 3.45% stake in Sainsbury’s.
The deal, the details of which were reported in a filing to the London Stock Exchange on Friday (Jan. 27), will see Bestway Group acquire around 81 million shares in the U.K.’s second-largest supermarket. And while no further details have been disclosed, based on Thursday’s closing price of 239.4 pounds a share, that would value the company’s stake at 193 million pounds ($239 million).
The filing stated that “Bestway Group intends to hold its shares in Sainsbury’s for investment purposes and looks forward to supporting the executive management team. Bestway Group may look to make further market purchases of Sainsbury’s shares from time to time, subject to availability and price.”
On the news, Sainsbury’s share price rose throughout Friday, climbing to above 250 pounds at points and making it one of the FTSE 100’s best performers.
The Sainsbury’s investment is Bestway’s first foray into the U.K. supermarket business; however, the group has a significant presence in the wholesale space and also owns pharmacy chain Well Pharmacy.
For its part, Sainsbury’s has partnered with Lloyds Pharmacy to offer its services in the retailers’ outlets, but the embattled chain recently announced that it will close all 237 locations in Sainsbury’s branches.
While it may be losing a partner in Lloyds Pharmacy, Sainsbury’s has moved ahead in the field of payments innovation, teaming up with Checkout.com to develop a new scan-and-go mobile payment solution.
As PYNTS has reported, 32% of U.K. retailers plan to add support for scan-and-go technology in the next three years, with grocery stores like Sainsbury’s leading the charge.
In the U.S., interest in the technology is slightly lower but still significant — 28% of U.S. merchants reported investing in scan-and-go capabilities. Yet the checkout method has a mixed track record and its widespread rollout has been blighted by retailers backtracking on their implementations.
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