Qatar Investment Authority has sold a £266m ($352m) stake in J Sainsbury, ending nearly two decades as the supermarket’s largest shareholder and continuing its withdrawal from major UK listed holdings, Bloomberg reports.

The sovereign wealth fund sold about 83.6m shares at £3.176 each and entered a derivatives agreement with JPMorgan, which led to the sale of a further 14m shares. The disposal follows QIA’s broader move to reduce positions in public companies, including a 2023 selldown of its Barclays stake.

Sainsbury’s shares dropped as much as 8.2% to £2.992 in early trading, the sharpest fall since March 2020, before trimming losses to 4.2%. The sale came after a 19% rally this year as value-focused shoppers lifted sales.

QIA first invested in Sainsbury’s in 2007 and later attempted an unsuccessful takeover. Before the share sale, it held 239.4m shares, equal to a 10.5% stake. Once the deal closes, Czech billionaire Daniel Křetínský’s Vesa Equity Investment will be the retailer’s largest shareholder.

Sainsbury’s recently raised its full-year profit guidance after strong customer demand for promotions and loyalty discounts. Like-for-like sales rose 4.5% in the 28 weeks to 13 September, driven by fresh food and increased use of its Nectar loyalty scheme.

Qatar remains a significant UK investor with stakes in International Airlines Group and ownership of London’s Harrods.

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