Asda co-owner Zuber Issa is considering selling his 22.5% stake in the supermarket giant to put his focus back into EG Group’s petrol station empire.
Zuber, alongside his brother Mohsin and private equity firm TDR Capital, acquired Asda in a £6.8bn deal just three years ago, however he has now approached buyout specialists and retailers as he looks to offload his share, The Telegraph reported.
It is thought that Zuber wants to put more attention into EG Group, and City sources told the publication that he could use the funds from a stake sale to buy Mohsin out of the petrol business.
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It is understood that Zuber would prefer another investor to join TDR and Mohsin for Asda’s next stage, which could include a bid for high street giant Boots.
He is thought to want more than £500m for his stake in the grocer, but any sale would need to be approved by Mohsin and TDR due to lock-in agreements.
Zuber could also look at selling the shares to TDR, however it is likely that the private equity firm would offer a lower price than an outside investor.
It comes as rumours swirl of a rift between the billionaire brothers as Mohsin leaves his wife of 30 years to begin a new romantic relationship with a former partner at accountancy firm EY, Victoria Price.
While Price never had the supermarket as a client, EY was Asda’s auditor before it quit last July.
The Telegraph also said that senior industry sources have speculated that TDR is looking at hiring a CEO with more grocery experience to replace Mohsin, who has led the business since 2021.
1 Comment. Leave new
Deserting a sinking ship.