Sainsbury’s hits seven year high on takeover chatter

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() shares leapt over 14% to a seven-year high after weekend reports it is a target of private equity group Apollo, which missed out on the takeover of Asda last year. The article said the interest was exploratory but analysts suggested Sainsbury’s would potentially be a good fit for private equity. Neil Wilson at markets.com noted Sainsbury's shares have already risen 40% this year amid heavy speculation it would be the next in the private equity firing line.  “Sainsbury’s is undeniably a good target for private equity with a considerable store estate, with the company having more than US$10bn in property assets – more than its current market cap by a decent margin. “The Argos tie-up is another long-term growth lever and provides further scale, while profits are on the up again in the wake of the pandemic, and net debt has come down. “It’s hard to beat those reliable cash flows – even without a big sale & leaseback plan the supermarkets ar
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