Words: Tom Ward
This week UK-based entrepreneur brothers Mohsin and Zuber Issa found themselves at the helm of the UK’s biggest leveraged takeover in more than a decade when they and secretive buyout firm TDR Capital completed the acquisition of Asda for £6.8 billion.
Walmart, Asda’s US parent company, will retain an equity investment in the business and seat on the board, with the Issa brothers and TDR Capital consortium taking a majority stake in the company.
According to information published by Business Report, Walmart’s remaining minority stake in Asda is valued at £500 million, while TDR Capital reportedly paid just £780 million in cash for the supermarket chain. According to the report, £.7 billion was raised through selling debt while £1.7 billion was raised through the sale of Asda assets, including the sale of the supermarket’s petrol stations to the Issa brother’s EG Group.
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