UK-based TDR Capital becomes majority stakeholder of Asda, obtaining Zuber Issa’s 22.5% share.
- The acquisition will increase TDR Capital’s stake in Asda to 67.5%.
- Mohsin Issa retains a 22.5% minority stake in the supermarket.
- Walmart maintains a 10% share of Asda.
- Asda’s financial performance indicates growth in its retailer George.
UK-based private equity firm TDR Capital has acquired co-owner Zuber Issa’s 22.5% share in Asda, becoming the majority stakeholder in the supermarket chain. This move raises TDR Capital’s ownership to 67.5%, with the acquisition expected to be completed in the third quarter of 2024.
Initially, TDR Capital, along with brothers Mohsin and Zuber Issa, acquired shares from Walmart in February 2021. They undertook a leveraged buyout, paying £780m for a supermarket valued at £6.8bn. Mohsin Issa continues to hold his 22.5% stake, while Walmart maintains its 10% shareholding.
Asda has announced it is actively seeking a new CEO, following the abrupt departure of Roger Burnley in 2021. The company is undergoing an extensive international executive search to fill the role permanently.
In Asda’s recent full-year financial results published on 22 April 2024, clothing sales of its in-house fashion and homeware brand, George, reached £1.5bn by the end of 2023. This marks a 3.4% increase over the previous year.
George’s Managing Director, Liz Evans, highlighted footwear and tailoring as promising growth areas for Asda. Meanwhile, Zuber Issa shifts his focus to managing EG UK’s forecourt sites, which he has acquired personally.
TDR Capital’s strategic acquisition signifies a significant shift in Asda’s ownership structure, with potential implications for its future growth.
