Bestway takes a 3.45% stake in Sainsbury’s which is thought to be worth around £193 million

Wholesale group Bestway has bought a 3.45% stake in Sainsbury’s thought to be around £193 million based on the share price of 239.4p on Thursday.

The wholesale group said they plan to use the shares for investment purposes and they may buy more shares “from time to time,” but they are not wanting to buy Sainsbury’s.

In a statement Sainsbury’s said, “We will engage with Bestway Group in line with our normal interactions with shareholders.”

John Moore, senior investment manager at RBC Brewin Dolphin, said, “Bestway buying around a 5% stake in Sainsbury’s is another indicator that UK shares are cheap – particularly in the retail sector, which has somewhat of a dark cloud hanging over it.

“While it looks unlikely the company will make an offer, the deal will put a cat among the pigeons and remind stock market-focused investors that trade values for assets may be much higher.

“Sainsbury’s is one of the least-favoured FTSE 100 stocks among analysts, according to our research, and the fact that it has been the target of investment from another sector player could spark a flurry of activity around the company and more widely.”