Are the Issa Brothers about to split?

Zuber and Mohsin Issa

The billionaire Issa Brothers, founders of petrol forecourts business EG and recent highly leveraged acquirers of Leeds-headquartered supermarket chain Asda appear to be on the verge of a split.

The younger of the two brothers Zuber, and the founder of Blackburn-headquartered EuroGarages, has been widely reported to be seeking a buyer for his 22.5% stake in Asda, which he secured after a £6.8bn private equity purchase backed by TDR Capital three years ago.

It has been reported that Zuber wants to concentrate his attention back on EG Group.
The recent parliamentary business select committee hearings, which Mohsin gave evidence at, confirmed the complexity of the ownership structures of Asda and EG, and any process to extricate any party would need to deal with lock-in agreements with his brother and TDR.

Media speculation has also focused on the breakdown of Mohsin’s marriage and a new relationship with a former tax partner from EY which has apparently “sent shockwaves” through the wider Issa family.

The Issas acquired Asda with £100m of cash, the same amount from TDR Capital, with the rest funded by the largest sterling corporate bond sale ever completed.

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