Asda co-owner Zuber Issa sells stake to private equity firm TDR Capital | Business News

A prominent co-owner of Asda has sold its stake to a private equity firm, making it the majority shareholder.

Zuber Issa, the co-chief executive, sold his 22.5% stake in Asda for private equity financier TDR Capital.

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Now TDR is the majority shareholder, controlling 67.5% of the supermarket group.

The deal is expected to close in the third quarter of this year, the company said.

Property Examination

Private equity firms acquire companies, invest to improve financial performance, and seek to sell them for a profit.

These companies have been criticized for their focus on profit, as employees suffer if a business fails. Asda said it used a “fire and rehire” practice – when an employee is told they will be fired unless they agree to potentially weaker contract terms – only as a last resort.

The property has been subject to political scrutiny in recent years.

MPs on the Business and Commerce Select Committee raised the issue in July It is December hearings last year.

Asda’s other remaining owners are Walmart – the previous owners, who held 10% – and Mohsin Issa, Zuber’s brother. Its share is 22.5%.

The company’s labyrinthine corporate structure was the target of questions from the MP in December, as there are 16 different entities between the owners and the supermarket operator, many of them registered offshore.

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Who are the Issas?

Billionaires Zuber and Mohsin Issa bought Asda from Walmart for £6.8 billion in 2020 in a deal backed by TDR capital.

The brothers own a gas station and gas station company EG Group, also with TDR.

Zuber will also step down as co-CEO of the group and Mohsin will become sole CEO.

“With the divestment of my Asda shares, I will now turn my attention to leading and managing the remaining EG forecourt locations in the UK that I have personally acquired and will dedicate more time to my charitable efforts,” Zuber said.

“I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s continued focus and shareholding, I am confident that Asda will achieve its growth ambitions.”