Sainsbury’s shares go through the roof as investment excitement builds amid ‘takeover’
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J Sainsbury shares jumped by almost nine per cent on Monday morning to 320.70p, after closing on 294.70p. Private equity giant Apollo is reportedly considering a takeover of Sainsbury’s after its previous bid for Asda was rejected.
As well as its rumoured bid for Sainsbury’s, the firm is also in negotiations to join a consortium connected to Softbank, the Japanese private equity company which is bidding for Morrisons.
Earlier last week, the Morrisons board confirmed its backing of Clayton, Dubilier & Rice (CD&R) to buy out its supermarket chain for £7billion.
This bested the £6.7billion offer put on the table by rival firm and investment group, Fortress.
According to The Sunday Times, Apollo Global Management is taking an “exploratory” look at Sainsbury’s.
Following its failure to bid successfully for Asda and the growing interest in the UK’s supermarkets, Apollo has been looking for other targets to buy out.
However, one complication that may arise from Apollo’s growing interest in this sector is its previous relationship with Fortress.
The private equity firm has said it considered teaming up with Fortress in the supermarket bidding wars, notably the Morrisons bid.
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According to analysts, any prior involvement in arranging a Morrisons buyout deal would make a successful Sainsbury’s purchase less likely.
Sainsbury’s shares have skyrocketed by 30 percent in 2021 following the continuous rumours and reports of its buyout.
Early interest in Sainsbury’s this year began when Daniel Křetínský, the Czech billionaire, businessman and owner of football club AC Sparta Prague, increased his stake in the supermarket chain by 10 percent.
Speaking to the press last month, Sainsbury’s Chief executive Simon Roberts did not confirm whether the board was considering any bidders seriously.
He said: “If we had anything to update on we would be updating on it.”
Express.co.uk has reached out to both Sainsbury’s and Apollo for comment.
More to follow…
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