(Alliance News) - Bestway Group Ltd on Friday said it has bought or agreed to buy a 3.5% stake in J Sainsbury PLC for an undisclosed sum, but said it does not plan to make a takeover offer for the supermarket chain.

Bestway said it bought 80.8 million Sainsbury's shares, a 3.45% holding.

Sainsbury's was up 4.9% at 251.20 pence early Friday in London following the announcement. That makes 80.8 million shares worth GBP203.0 million.

"Bestway Group intends to hold its shares in Sainsbury's for investment purposes and looks forward to supporting the executive management team," it said.

Bestway said it may look to make further purchases in the future and confirmed that it is not considering a takeover offer for Sainsbury's.

The supermarket chain noted the announcement and said it will "engage" with Bestway "in line with our normal interactions with shareholders".

Bestway is a London-based conglomerate, with operations across the UK, Pakistan and the Middle East. It was first established as a chain of convenience stores in 1963, but now has interests across the wholesale, pharmacy, real estate, cement and banking sectors.

By Tom Budszus, Alliance News reporter

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