Zuber Issa, co-owner of Asda with his brother Mohsin, has agreed to sell his stake in the British supermarket chain to TDR Capital, making the private equity firm the majority owner of Asda. The deal, estimated to be worth about £500mn, will see TDR owning 67.5% of the company, while Mohsin will retain a 22.5% stake. This sale formalizes a split between the brothers, with Zuber exiting Asda and taking a step back from EG Group, the petrol station business they founded together.
This transaction comes after intense public and political scrutiny of the Issa brothers, who built their retail empire with the backing of TDR. The sale of Zuber’s stake in Asda and the divestment of EG Group’s remaining UK forecourt business to Zuber for £228mn aims to neatly divide the assets between the brothers. Zuber will step down as co-chief executive of EG Group, with Mohsin continuing to lead the business as sole chief.
TDR Capital, the private equity firm involved in the deal, has become one of the UK’s most prominent investment groups, managing more than €15bn. The firm helped finance the transformation of EG Group into a global retail empire and made a significant investment in acquiring Asda in a £6.8bn deal in 2020. Under TDR and the Issa brothers’ ownership, Asda has focused on diversifying its income stream by launching convenience stores and announcing a £2bn takeover of the UK and Irish operations of EG Group.
In addition to their increased stake in Asda, TDR has also recently acquired a majority stake in the UK franchise rights of fast-food chain Popeyes UK and pet retailer Jollyes. The move to acquire Zuber’s stake in Asda and further investments in other businesses demonstrate TDR’s commitment to supporting the ambitious growth strategy of Asda and moving the supermarket chain forward. Lord Stuart Rose, the chair of Asda, welcomed TDR’s increased investment in the business as a sign of commitment to the company’s future.
The transaction involving the sale of Zuber’s stake in Asda and the divestment of EG Group’s UK forecourt business is part of a broader reorganization of the assets between the Issa brothers. This move aims to clarify the ownership structure and responsibilities within the brothers’ retail empire and allow each brother to focus on their individual interests and areas of expertise. Zuber will shift his attention to managing the remaining EG UK forecourt sites he acquired and spend more time on charitable endeavors.
Overall, the sale of Zuber’s stake in Asda to TDR Capital marks a significant shift in the ownership structure of the British supermarket chain and EG Group. The deal will allow TDR to become the majority owner of Asda and support the company’s growth strategy under new leadership. Asda’s focus on diversification and expansion, along with TDR’s continued investment in the business, signals a promising future for the supermarket chain and its position in the UK retail market.
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