SAINSBURY'S TAKING CONTROL OF SHAW'S SUPERMARKETS
J Sainsbury Plc<SNB.L> said it agreed to
take control of the U.S. Shaw's Supermarkets Inc through a
combination of share purchases and a tender offer at 30 dlrs a
share.
    Sainsbury bought about 21 pct of the stock in 1983. It said
its U.S. Subsidiary, Chene Investments Inc, bought 2.55 mln
common shares from the controlling Davis family yesterday at 30
dlrs a share for 76.5 mln dlrs, lifting its stake to 49.4 pct.
    A tender offer for the outstanding shares will be launched,
also at 30 dlrs a share for a maximum further cost of 184.4
mln.
    The Shaw's Board and the Davis family has agreed to accept
the offer, thus assuring Sainsbury's a total holding of 74.0
pct.
    The company had allotted 20.18 mln new ordinary shares to
<Warburg Securities Ltd> which it said would be sufficient to
finance about 188 mln dlrs of the maximum 261 mln dlrs payable.
    Shaw's operates a chain of 49 supermarkets in
Massachusetts, Maine and New Hampshire which in 1986 produced
sales of 1.1 billiob dlrs and pretax profit of 31.1 mln. At the
end of 1986 it had net assets of 88 mln dlrs.
    Last September, Sainsbury's increased its stake in Shaw's
to 28.5 pct. In the year to March 21, it reported a rise in
pretax profit to 246.9 mln stg from 192.7 mln on sales that
increased to 4.04 billion from 3.58 billion.
    Sainsbury shares had fallen five pence before the
announcement to 590p from last night's close but were unmoved
by news of the deal.
 REUTER
