The Daily Telegraph - Saturday
Zuber Issa to sell Asda stake as brothers split empire
ONE of Asda’s billionaire owners is close to selling his stake in the supermarket amid an alleged rift with his brother.
Zuber Issa is reportedly close to offloading his 22.5pc share in the retailer to TDR Capital, which would hand majority control of the chain to the private equity giant.
The deal would increase TDR’s holding in Asda to around two thirds, while the transaction would further dismantle the relationship between brothers Zuber and Mohsin Issa, Bloomberg reported.
Zuber is separately trying to buy out parts of the EG Group petrol station empire that he built with Mohsin, in the latest move to disentangle the brothers’ fortunes. Details of the proposed EG Group deal were laid out to investors last month, who were told that the business is in “active discussions with Zuber Issa regarding the sale” of UK assets.
The potential changes at EG Group come as Mohsin Issa, who remains on the board, embarks on a new phase in his personal life.
Following a report by The Telegraph,
Mohsin confirmed in February that he is in a romantic relationship with Victoria Price, a former partner at EY, which was Asda’s auditor until it quit in July last year.
Mohsin was subsequently forced to deny speculation of a rift with Zuber in an interview with the BBC, claiming they get on “exceptionally well” and speak daily. The Issa brothers teamed up with London-based TDR to buy Asda for £6.8bn in 2021 from US retail giant Walmart.
However, the pair have endured a rocky tenure as the supermarket battles mounting debt pressures and falling market share.
Asda has around £4.2bn of debt, which has led to hundreds of millions of pounds in interest costs.
Mohsin Issa has been called for questioning by MPs twice in the past year amid concerns that Asda’s finances have led to price increases for customers.
They also inquired why Asda had set up companies offshore in Jersey, which Mohsin Issa denied was for tax purposes. The Telegraph revealed in
February Zuber Issa’s plan to offload his stake in the debt-laden supermarket, which was thought to be valued at more than £500m.
However, his attempts to exit Asda were complicated by so-called lock-in agreements with Mohsin and TDR. A sale would need to be approved by both.
Born in Blackburn, Zuber Issa founded EG Group in 2001, bringing his brother Mohsin into the fold several years later and eventually building an empire of thousands of petrol stations around the world.
TDR, which also owns stakes in Stonegate Pub Company, Pizza Express and David Lloyd Leisure, has backed most of the Issas’ significant acquisitions since.