Asda’s petrol station business sold to EG Group for £750m as part of takeover deal
The Issa brothers and TDR Capital have announced that they will sell Asda’s petrol station business to EG Group, which they also own, for £750m after they complete their deal to buy the supermarket giant.
The consortium announced this morning that the Asda deal is expected to complete later this month, subject to regulatory approval.
The forecourts business sale will complete in the second quarter, they said.
In October British billionaires the Issa Brothers and private equity firm TDR announced they would buy a majority stake in Asda in a £6.8bn deal.
US retail giant Walmart – the grocer’s current owner – will retain a minority stake in the firm.
The Issa Brothers and TDR also announced plans today to sell some of Asda’s distribution assets to institutional real estate investors.
As part of the financing of the acquisition, the firms said they will launch the syndication of €840m of institutional term loan B facilities and, later, the offering of £2,250 million of senior secured notes and £500 million of senior notes.
Mohsin and Zuber Issa will join Asda’s board along with Manjit Dale and Gary Lindsay of TDR Capital and Walmart International’s finance chief Chris Nicholas.
Asda chief executive Roger Burnley will also be appointed to the board of directors.
In a statement today the Issa brothers said: “Looking ahead, and subject to the required regulatory approvals, we look forward to working with our Asda colleagues to build an even stronger, more differentiated retailer – including through the investment of more than £1 bn in the next three years to further strengthen the business and its supply chain.
“We are also excited about the proposed integration of the Asda forecourts into EG’s established UK operations, which we believe would underpin the future growth of the combined network.”