News Releases
19th July 2007
STATEMENT BY DELTA (TWO) LIMITED REGARDING J SAINSBURY PLC
Delta Two has noted articles which appeared in the UK press this morning speculating on the terms of the proposal Delta Two addressed to the Board of Sainsbury. Delta Two confirms that a comprehensive and detailed proposal was delivered to the Board of Sainsbury yesterday morning.
The proposal concerns the possibility of Delta Two making an offer to acquire the balance of the ordinary share capital of Sainsbury at a price of 600 pence in cash per share. This is in addition to the 7.35 pence cash dividend to be received by shareholders of Sainsbury on Friday 20th July 2007. If made, the offer would be funded by an investment of £4.6 billion in the form of equity and subordinated PIK shares and notes, and debt finance of £6 billion provided by a banking syndicate. The proposal also envisages an investment of some £3.5 billion over the next five years to fund new store expansion, further store refurbishment and the development of Sainsbury’s non-food offering.
No decision has, however, been made regarding any possible offer and accordingly there can be no certainty that any offer for Sainsbury will be made. A further announcement may be made, if and when appropriate.
Paul Taylor, Principal of Three Delta, which is the strategic investment adviser to Delta Two in relation to this investment, said:
“Our proposal is focused on growth, not retrenchment. It is backed by a shareholder with the resources and commitment to continue to improve Sainsbury’s market position in the UK with its reputation for quality and innovative food at competitive prices.”
