TDR Capital is set to become the majority shareholder of Asda, marking a significant shift in the ownership of the UK supermarket chain.
- The private equity firm, based in the UK, has acquired Zuber Issa’s 22.5% stake, increasing its total ownership to 67.5%.
- This transaction, expected to finalise by the third quarter of 2024, follows the initial purchase of shares from Walmart in 2021.
- Mohsin Issa will retain a 22.5% stake in Asda, while Walmart holds on to a 10% share.
- Asda is actively searching for a permanent CEO, following the abrupt departure of Roger Burnley in 2021.
The UK-based private equity firm TDR Capital has significantly increased its stake in Asda by acquiring Zuber Issa’s 22.5% shares in the supermarket chain. This acquisition will elevate TDR Capital’s total ownership to 67.5%, positioning it as the majority stakeholder.
Originally, TDR Capital entered the Asda scene alongside Mohsin and Zuber Issa in February 2021 when they purchased shares from Walmart in a deal valued at £6.8 billion. The strategic move was part of a leveraged buyout, costing the investment partners £780 million. Now, with Zuber Issa stepping back, Mohsin Issa continues to hold a 22.5% stake in Asda, and Walmart retains a 10% share.
The completion of the transaction is anticipated by the third quarter of 2024. During this period, Asda plans to enhance its leadership team by appointing a permanent CEO. The role remains vacant following the unexpected exit of Roger Burnley in 2021, and the company is engaged in a thorough international search for a suitable candidate.
Financially, Asda’s clothing and homeware brand, George, has demonstrated robust performance. For the year ending 31 December 2023, George reported sales of £1.5 billion, reflecting a 3.4% increase from the previous year. Liz Evans, George’s Managing Director, highlighted footwear and tailoring as promising areas for future growth.
Zuber Issa, having divested his shares in Asda, intends to concentrate on managing the EG UK forecourt sites he has personally acquired, shifting his focus away from the supermarket domain.
The acquisition by TDR Capital marks a pivotal transition in Asda’s ownership, setting the stage for future developments within the retailer.
