The sale brings TDR Capital’s share in the supermarket group to 67.5%, while 22.5% is still owned by Zuber’s brother, Mohsin
Zuber Issa has offloaded his stake in Asda to the supermarket’s private equity backer, TDR Capital.
This move increases TDR Capital’s ownership in the supermarket giant to 67.5%, while Zuber’s brother, Mohsin, retains a 22.5% share. The Issa brothers initially acquired Asda from Walmart in 2020 in a £6.8billion transaction, supported by TDR Capital. Walmart still owns a minor 10% share.
The deal is set to complete in the third quarter of this year, the company said on Friday. TDR Capital also has significant investments in the Issa brothers’ other venture, the EG Group, which operates numerous petrol station forecourts.
Zuber will also step down as co-chief executive of EG Group after reaching an agreement to buy its remaining UK forecourt business and some food service sites for £228 million. EG Group said it will use the cash to repay debt and shore up its balance sheet. Zuber will keep his shareholding in EG Group and continue as a non-executive director, while his brother Mohsin will become sole CEO.
Zuber Issa said: “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours.”
He added, “I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
Gary Lindsay and Tom Mitchell, managing partners at TDR Capital, said: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands. As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.”
The announcement comes amid Asda’s ongoing search for a new chief executive following Mohsin Issa’s decision to step back from day-to-day operations as part of a strategic overhaul of the company. Earlier this year, Mohsin announced he was performing a “reset” of the company ahead of appointing a new chief.
In April, Asda revealed its underlying earnings swelled by a quarter last year with growth in food and clothing sales.
