Bestway says 3.45 stake is for investment purposes
Says may increase holding
Looks forward to supporting Sainsbury39;s management
Sainsbury39;s says will engage with Bestway
Sainsbury39;s shares up 4.5

LONDON, Jan 27 Reuters Retail group Bestway, the owner of Costcutter, has built a 3.45 stake in Sainsbury39;s, describing the move as an investment and not a step towards making a takeover offer for Britain39;s second largest supermarket group.

Sainsbury39;s shares were up 4.5 on Friday, hitting their highest since April and leading gainers on the FTSE 100 index.

Bestway, which bills itself as the seventh largest familyowned business in the United Kingdom with turnover of about 4.5 billion pounds 5.57 billion, said it intends to hold its shares and looks forward to supporting Sainsbury39;s executive management team.

Bestway Group confirms that it is not considering an offer for Sainsbury39;s, it said.

Bestway, which is owned by the Pervez, Choudrey and Sheikh families and led by Chief Executive Zameer Choudrey, said it may look to make further market purchases of Sainsbury39;s shares, subject to availability and price.

It took the unusual step of telling institutional shareholders in Sainsbury39;s interested in selling their shares to it to contact the broker Redburn.

Sainsbury39;s, which earlier this month reported betterthanexpected Christmas trading, said it would engage with Bestway in line with its normal interactions with shareholders.

The 3.45 stake…