Asda co-owners the Issa brothers have denied taking money out of the grocer as they defended its complex ownership structure to MPs.
The Issas refuted suggestions that they took dividends out of the business following their £6.8bn Asda acquisition in 2021.
The denial forms part of the Issas response to the House of Commons Business and Trade Committee following a hearing back in July in which Mohsin Issa appeared and was accused of evading questions.
Darren Jones, the former chair of the committee, sent a letter to Issa in August seeking additional information.
Jones pointed out that a holding company within the Asda organisation distributed a £1.8bn dividend last year, contrary to Issa’s testimony.
He wrote: “During the evidence session, I asked about dividends. You said that no dividends had been paid out. But from the available accounts, we can see that a ‘dividend’ of £1.8bn was made to Bellis Acquisition Co plc.”
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However, Issa insisted this week that “no dividends have been received by the shareholders since their acquisition of the business in 2021” and said the £1.8bn payment was made to settle intercompany loans.
Jones also raised concerns about Asda’s complex company structure flagging that “decisions on financing, may restrict your ability to help meet cost-of-living pressures on your customers”.
The Telegraph reported that Asda now comprises a total of 24 businesses, some of which are incorporated in Jersey.
Issa responded that it was not uncommon for a business of its size to have such a complex structure.
He said the structure enables smooth lending practices and helps with future takeover activity.
