Zuber Issa has sold his 22.5% stake in Asda to TDR Capital and the private equity firm now holds 67.5% in the supermarket group, his brother Mohsin still owns 22.5%.
Asda announced on Friday the deal will be completed by the third quarter of 2024.
In 2020 the Issa brother’s bought Asda from Walmart for £6.8 billion and TDR Capital backed the deal and Walmart has a 10% stake in the supermarket.
Following an agreement Zuber will also step down as co-chief executive of EG Group and buy the UK forecourt business with some food service sites in a deal worth £228 million.
Zuber Issa said, “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours.
“I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
Gary Lindsay and Tom Mitchell, managing partners of TDR Capital, said, “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.”
“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.”
Nadine Houghton, GMB National Officer, said, “TDR Capital has serious questions to answer about their asset-stripping of Asda.
“Their private equity ownership has already been bad for consumers – with Asda now the most expensive retailer for fuel – and bad for staff, with millions of working hours cut from the shop floor.
“Further involvement from TDR can only spell more bad news. Bosses must change course to protect Asda workers and stop this British retailer further losing more market share.”
