Sainsbury’s biggest investor Qatari Investment Authority has announced that it may back the supermarket if it were to make a reestablished offer of over £1bn for Argos. The green light from Qatari, which possesses 25% of Sainsbury’s, is essential for the final decision.
The grocery store chain is pushing for the primary draft of a plan with Home Retail ahead of the takeover board’s 2 February due date. The UK’s second biggest general store chain unobtrusively made a takeover offer to Home Retail in November 2015 at a supposed 130p a share but was cast off by Argo. Market specialists accept there is “willingness” among various shareholders in both Home Retail and Sainsbury’s to bring in a deal. But much will rely on upon the cost.
Home Retail’s investors have effectively communicated unease that the board did not counsel them when Sainsbury’s first made the offer in November. Toscafund and Schroders, main five investors in Home Retail, are accepted to have pushed both sides to arrange a new deal. This has been elevated by Home Retail’s £340, sale of Homebase to Australian company Wesfarmers, making ready for Sainsburys’ to cull Argos – the main retailer it was really keen on.