Zuber Issa is reportedly close to agreeing a deal to offload his 22.5pc share in the retailer to TDR Capital, according to Bloomberg News, which would hand majority control of the chain to the private equity giant.
The deal would increase TDR’s holding in Asda by about two-thirds, while the transaction would further dismantle the relationship between brothers Zuber and Mohsin Issa.
Zuber is separately trying to buy out parts of the EG Group petrol station empire that he built with Mohsin, in the latest move to disentangle the brothers’ fortunes. Details of the proposed EG Group deal were laid out to investors last month, who were told that the business is in “active discussions with Zuber Issa regarding the sale” of UK assets.
The potential changes at EG Group come as Mohsin, who remains on the board at the business, embarks on a new phase in his personal life.
Earlier this year, following a report by The Telegraph, Mohsin confirmed that he is in a romantic relationship with Victoria Price, a former partner at EY, which was Asda’s auditor until it quit in July last year.
Mohsin was subsequently forced to deny speculation of a rift with Zuber in an interview with the BBC, claiming they get on “exceptionally well” and speak daily.
The Issa brothers teamed up with London-based TDR to buy Asda for £6.8bn just three years ago from US retail giant Walmart.
However, the pair have endured a rocky tenure as the supermarket battles mounting debt pressures and falling market share. Asda currently has around £4.2bn of debt, which has led to hundreds of millions of pounds in interest costs.
