As Morrisons is booted off FTSE100, Sir Ken buys stake in SAINSBURY’S

Sir Ken Morrison
Sir Ken Morrison

​​​Sir Ken Morrison, the ​former chairman of​ Morrisons​,​​ has bought a hefty stake in rival Sainsbury's.

​The news came to light on the day that Bradford-based Morrisons gets relegated from the ​London Stock Exchange’s elite FTSE 100 index​ following falling sales, profits and market share.

​Sir Ken and his son William have acquired 4.7 million shares in Sainsbury's, giving them a £12m stake in the firm.

Sainsbury's is the only one of the big four supermarkets to be gaining market share while rivals Tesco, Asda and Morrisons lose shoppers to discounters Aldi and Lidl.

​Sir Ken holds 2.6 million shares worth £6m and has given Mike Coupe, the chief executive at Sainsbury's​,​ his public backing.​ Sir Ken's son William holds the remainder.​

Sir Ken purchased his stake around April last year​, before the appointment of David Potts as Morrisons' new chief executive.

Speaking about the Sainsbury's share purchase, Sir Ken told The Times: "It is a well-run company​."

Morrisons​, t​he UK’s fourth biggest grocer​,​ will be replaced ​in the FTSE 100 today ​by credit lender Provident​ ​Financial, which is also based in Bradford.

The grocer narrowly missed relegation in the June and September reviews and the demotion ends 14 years in the top flight.

Sir Ken has given his public backing to Mr Potts, who joined Morrisons in March. Mr Potts has taken the axe to managerial roles and hired an extra 5,000 shop staff.