Qatar Holding, part of the Qatar Investment Authority (QIA), has moved to reduce its stake in UK supermarket chain J Sainsbury by launching a major share sale to institutional investors.

QIA plans to sell up to 83.6 million ordinary shares in Sainsbury’s with a placing, while a related derivative transaction with JP Morgan Securities will involve a further 14 million shares sold into the market to hedge the bank’s exposure. In total, up to 97.5 million shares could be placed.

QIA, which owns around 10.5% of Sainsbury’s, did not disclose the precise proportion of its holding that will be sold, as the final size and price of the placing will be set through an accelerated bookbuild with institutional investors. The bookbuild opens immediately and can be closed at short notice, with results to be announced “as soon as practicable” afterwards.

The Gulf sovereign investor emphasised that it will not receive any proceeds from the 14 million “delta” shares being sold by JP Morgan as principal, which are linked to the derivative structure rather than QIA’s own shareholding. Sainsbury’s itself is not a party to the transaction and will receive no proceeds from the placing.

Following completion of the sale, QIA’s remaining shares in Sainsbury’s will be subject to a 90‑day lock‑up, limiting the sovereign fund’s ability to dispose of further stock over the short term. The lock‑up is subject to standard exceptions and can be waived by the transaction’s sole global coordinator.

JP Morgan Securities, which conducts its UK investment banking business as JP Morgan Cazenove, is acting as sole global coordinator and sole bookrunner on the QIA placing.