Asda is now under the majority control of private equity behemoth TDR Capital, following the sale of billionaire Zuber Issa’s shares in the supermarket giant. Funds managed by TDR Capital now have a 67.5 per cent stake in the Leeds-based company, while Zuber’s brother Mohsin Issa maintains his 22.5 per cent holding.
The remaining 10 per cent is held by previous owner, Walmart. The transaction, which was finalised on Friday, was initially revealed in June.
It was anticipated at the time that the deal would be concluded in the third quarter of 2024. Despite the Issa brothers no longer collaborating on Asda, they continue to be involved in numerous business interests.
In a statement, Asda said: “Following the announcement of the proposed transaction in June 2024, today Asda has confirmed that funds managed by TDR Capital LLP have completed the acquisition of Zuber Issa’s shares in the business.
“This brings the ownership of Asda to 67.5 per cent by TDR Capital, 22.5 per cent by Mohsin Issa, and 10 per cent by Walmart Inc.
“Following completion of the sale of his stake in Asda, Zuber Issa has stepped down from his non-executive role on Asda’s board.
“Asda’s board now comprises Lord Rose, Alison Carnwath, Mohsin Issa, Rob Hattrell, Gary Lindsay and Courtney Naudo.”
Following the announcement of the deal, it was confirmed that Mohsin Issa would step down from his executive leadership role to concentrate on his position as the sole chief executive of EG Group, a petrol forecourts business. Asda is persisting in its three-year quest for a chief executive “to lead the business in the next phase of its strategy” and has stated it will provide an update to the market “in due course”.
Mohsin, along with his brother Zuber and TDR Capital, acquired Asda in 2021 through a debt-fuelled takeover, and since then, Mohsin has been deeply involved in the supermarket chain’s day-to-day management.
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Original artice – https://business-live.co.uk/all-about/yorkshire-humber