Sainsburys Raises £445m to Fund Growth
Sainsbury’s is to raise £445m to fund an accelerated growth drive and deliver an extra 2.5 million sq ft of trading space by March 2011.
Sainsbury’s will raise the new cash by a share placing and convertible bond offer.
Sainsbury’s chief executive Justin King said: “Over the past four years we have reinvigorated our business and demonstrated the strength of Sainsbury’s brand with 18 consecutive quarters of like-for-like growth.
“The fund raising will provide us with the financial flexibility to take advantage of current opportunities to grow our business further and faster.
“We can speed up our growth in areas of lower market share, maintain the strength of our balance sheet and invest in the long-term growth of the business.”
The grocer intends to add more freehold and long leasehold sites, improve its existing estate with extensions and more non-food ranges and continue to develop its c-store business - the company want to open 150 new stores over the next two years.