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Czech billionaire takes big stake in Sainsbury's

Sainsbury's store
Sainsbury's store

Czech billionaire Daniel Kretinsky has launched a fresh assault on a UK household name by taking a major stake in Sainsbury’s.

The serial investor, dubbed the “Czech sphinx”, has disclosed a 3pc stake worth roughly £130m  in the supermarket, making him the fourth-largest shareholder.

The disclosure follows Mr Kretinsky’s stakebuilding in Royal Mail, which has led to him becoming the postal monopoly’s biggest investor.

Speculation has mounted this year that the Czech, best known for investing in the energy sector, may be looking to break up Royal Mail.

While its woes in the UK have been exacerbated by the Covid crisis, the FTSE 250 company’s overseas arm, GLS, continues to go from strength to strength.

In a rare public statement, Mr Kretinsky said earlier this year: “In the case of Royal Mail, we particularly appreciate the company’s ­tradition, history and importance of the public service it provides.”

Markets Hub - J Sainsbury PLC
Markets Hub - J Sainsbury PLC

Branislav Miskovic, a director at Mr Kretinsky’s fund Vesa Equity Investment, said: "The segment of food retail distribution has been one of the key areas of interest for Vesa Equity Investment.

“We view Sainsbury’s as an attractive investment opportunity for the long-run even against the backdrop of the highly competitive UK grocery market. Sainsbury’s is a strong traditional brand with good locations concentrated in the south east of England, including London and an attractive convenience as well as online food delivery proposition for its customers.”

Shares in Sainsbury's ended 3.3pc higher at 191.1p, but are still below their 232p at the start of January. The supermarket, which also owns Argos, is worth £4.25bn - less than a fifth of Tesco's £21bn market cap.

Sainsbury's declined to comment.