Asda’s billionaire co-owner Zuber Issa is understood to be close to selling his stake in the UK supermarket to TDR Capital.
According to Bloomberg, the private equity firm, which is already a co-owner of Asda, along with Zuber’s brother Mohsin Issa, is closing a deal to buy the 22.5% stake.
This would give TDR Capital majority control of the grocer, with people familiar with discussions having told the publication that the agreement is set to be announced in coming weeks.
However, they did not specify the terms that were being discussed.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
The Issa brothers and TDR Capital bought the supermarket chain from Walmart in 2020 in a deal worth £6.8bn.
Zuber was first thought to be selling his stake in February, having approached buyout specialists and retailers as it was thought that he wanted to put more attention into the EG Group petrol station empire.
At the time, City sources told The Telegraph that Zuber could use the funds from a stake sale to buy Mohsin out of the petrol business.
However, Zuber is now planning to step down as co-chief executive of EG Group while its chief operating officer Salim Hasan is also set to exit, however, these changes are understood to only be implemented if Zuber completes a deal to buy a selection of sites from EG Group.
Its investors have been told that the business is in “active discussions with Zuber Issa regarding the sale” of UK assets.
At Asda, Mohsin Issa said last month that he was planning to step back from his role at the supermarket giant after carrying out a “reset” of the business.
In his first broadcast interview with the BBC, Mohsin said that while he was “here for the long haul,” he would appoint a chief executive to take over daily management of the company.
When the latest agreement with Zuber is complete, Mohsin will own 22.5%, Walmart will retain its 10% stake and the TDR Capital will own the remainder.
Asda has declined to comment.
2 Comments. Leave new
Yet again wages are wrong this month with people still not being paid correctly againg. Sick pay and holiday pay still missing , Moshin knew this was going to happen with the new system but charged on regardless anyway
Yet again wages are wrong this month with people still not being paid correctly again. Sick pay and holiday pay still missing , Moshin knew this was going to happen with the new system but charged on regardless anyway