Shares in British supermarket giant Sainsbury’s (SBRY.L) fell 4% on Wednesday after the Qatar Investment Authority (QIA) announced it would sell a significant portion of its holding in the company, ending nearly two decades as the grocer’s largest shareholder.

Details of the QIA Stake Reduction

The sovereign wealth fund plans to offload up to 83.6 million shares through a placing aimed at institutional investors, reducing its stake from 10.48% to 6.82%, according to LSEG data. The sale is expected to raise approximately £265.5 million ($352 million), with shares priced at 317.6 pence each.

A source familiar with the matter emphasized that the disposal was part of QIA’s normal portfolio management and that the fund continues to have confidence in Sainsbury’s management. The company itself did not provide comment on the stake reduction.

Market Impact

Before Wednesday’s decline, Sainsbury’s shares had risen 23% year-to-date, recently reaching a five-year high of 349 pence following the group’s full-year profit upgrade. That announcement also prompted senior executives—including property director Patrick Dunne, chief commercial director Rhian Bartlett, and finance chief Blathnaid Bergin—to sell some of their holdings.

Other major UK food retailers, such as Tesco (TSCO.L), Marks & Spencer (MKS.L), and Ocado (OCDO.L), also experienced small share price declines of 1–2% in sympathy with Sainsbury’s drop.

Historical Context of QIA’s Investment

The QIA has been a Sainsbury’s shareholder since 2007, at which point its holding peaked at 25%. That year, the fund considered a potential acquisition of the grocer but ultimately abandoned the bid. The sovereign wealth fund began gradually selling shares in 2021, with its most recent reduction in October 2024, raising approximately $400 million.

Following the latest sale, Czech billionaire Daniel Kretinsky, through his Vesa Equity Investment vehicle, which holds 10.3%, will become Sainsbury’s largest shareholder. QIA’s remaining shares will be subject to a 90-day lock-up period.

Outlook for Sainsbury’s

Analysts note that while QIA is reducing its stake, the supermarket group continues to show strong operational performance and profit growth, indicating that the sale is a portfolio management decision rather than a reflection of business fundamentals. Investors will watch closely how new shareholder Daniel Kretinsky influences Sainsbury’s strategic direction in the coming months.