The recent press coverage of Sir Anwar Pervez’s investment in Sainsbury’s Plc, through his Bestway wholesale company, has rekindled takeover rumblings of the big four supermarket chain, which originally commenced back in what feels like the distant past of 2021.
With takeovers of the company’s peers Morrisons and Asda already having concluded it would seem logical that Sainsbury’s could just well be edging nearer to the checkout.
As a long-standing and wily purveyor of retail, with a proven eye for value, we suspect Pervez has spied what could be considered a win-win opportunity, perhaps, either leading a value-add takeover attempt, combining Sainsbury’s with his Bestway wholesale business, in due course, or simply benefiting from a profitable return on investment, resulting from a potential supermarket sweep of interested bidders racing down the aisles.
Either way, the company is currently trading at a not insubstantial discount to net asset value, with a wide ranging and reliable customer base and cash flows, fully funded pension commitments and added value from banking and its Argos retailing divisions, we see a myriad of value in the company either as a continued standalone business or a takeover arbitrage play and are therefore pleased to join Mr Pervez in grabbing a trolley and filling it full with Sainsbury’s shares.
Timing is everything and so no doubt the Bestway forward for Sainsbury’s will become clear in due course.
Samuel S. Green
Britannic Holdings Corporation Limited
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