News Releases
20th September 2007
Joint statement by Delta (Two) Limited and J Sainsbury PLC
Delta Two and the QIA would expect to manage the capital structure flexibly in response to opportunities and challenges encountered by the business. In this regard, Delta Two and the QIA will, where appropriate, support and develop the business through further equity investment.
• Delta Two has a high regard for Sainsbury’s management and employees
Delta Two has a high regard for the management and employees of Sainsbury’s and attaches considerable importance to retaining their skills and expertise for the benefit of the business in the future. Delta Two intends to maintain the existing cash benefits, and put in place new performance-based incentives for management and employees. In relation to the Executive Directors, details of these arrangements will not be proposed until such time as any offer becomes wholly unconditional.
• Delta Two to work constructively with the trustees of Sainsbury’s pension schemes
Delta Two recognises the importance of ensuring that the Sainsbury’s pension schemes are appropriately funded, and intends to work constructively with the Sainsbury’s pension trustees to reach agreement on the appropriate level of funding for the schemes. Delta Two will approach the Sainsbury’s pension trustees imminently to commence detailed discussions.
• Delta Two and the QIA
The QIA is the ultimate parent of Delta Two being the company through which the QIA holds its existing interests in Sainsbury’s. The QIA was established in June 2005 with the objective of developing, investing and managing Qatar’s reserve funds and other property assigned to it by Qatar’s Supreme Council. It is a Qatar government-controlled, non-corporate entity which invests in local and international markets as part of the Qatari government’s strategy of reducing the country’s economic reliance on fossil fuels. His Excellency Sheikh Hamad Bin Jasim Bin Jabor Al-Thani, the Prime Minister of the State of Qatar, is the Vice Chairman and CEO of the QIA.
The QIA has given appropriate assurances to the Board of Sainsbury’s concerning the ultimate ownership and control of Delta Two, including the nature of the relationships between the QIA, Delta Two and Paul Taylor. Delta Two intends that Sainsbury’s will adopt the guidance in the Walker Report relating to enhanced reporting and disclosure standards for privately-owned companies.
