Crystal Amber, the UK activist fund, is in talks with several large overseas investors about mounting a dramatic share raid on J Sainsbury.
It is thought that the fund, which has been approached by an unknown US investor earlier this year, wants to force the retailer into a major sell-off of its vast property estate. The fund has a 60-page dossier on Sainsburys, highlighting strategies to increase shareholder value.
It is understood that Crystal Amber wants to return £2.25bn to shareholders, by reducing Sainsbury’s ownership of its near £12n property portfolio from 61% to 51%, and increasing net debt to £2.7bn.
The grocer’s target is to own between 60% to 65% with the rest of its property in leasehold. But it is believed that Crystal Amber’s moderate leveraging is likely to win support from major shareholders, including the Qataris, the Sainsbury family and company’s pension trustees.
Sainsburys estimates that only three quarters of its supermarkets are in the right location and that, in five years, about 25% of the estate will ‘have some under-utilised space’.
Sunday Telegraph Business, 1
