Issa Brothers Announce Split as Zuber Sells Asda Stake to TDR Capital
The billionaire Issa brothers, known for their ownership of Asda, are making headlines as Zuber Issa has decided to sell his shares in the supermarket to private equity firm TDR Capital. This move will see TDR’s stake increase from 45% to 67.5%, while Mohsin Issa will retain his 22.5% ownership. The transaction is set to be completed between July and September.
The Issa brothers, with a combined fortune of £5bn, have made a name for themselves through their petrol forecourts business, which eventually led them to acquire Asda in a £6.8bn deal three years ago. Zuber’s decision to sell his stake comes after the recent sale of EG Group’s remaining UK petrol stations to him for £228m. He plans to focus on managing these sites and dedicating more time to charitable endeavors.
Despite the split in their business interests, the brothers will still have shared investments in sportswear brand Castore and hydrogen lorry startup HVS. This development comes amidst concerns raised by the GMB union about TDR Capital’s increased involvement in Asda, with fears of asset-stripping and negative implications for both consumers and staff.
The Issa brothers have also faced scrutiny over the financing of their business empire, particularly the debt-fueled deals at EG Group. However, both Mohsin and Zuber have expressed their commitment to the long-term success of Asda and their continued partnership in various ventures, including philanthropic projects through the Issa Foundation.
TDR Capital, on the other hand, has defended its record at Asda, highlighting the significant progress made in transforming the chain, including the expansion of store footprint and the successful launch of a loyalty app with millions of active customers.
As the Issa brothers navigate this transition in their business empire, the future of Asda and their other investments remains a topic of interest and speculation in the business world.