New Asda owners sell stake in EG holding company

The Issa brothers, the new billionaire owners of supermarket giant Asda, have reportedly generated hundreds of millions of pounds by offloading a stake in its holding company to a number of global investors. 

According to Sky News, an Abu Dhabi sovereign fund and two Canadian pension funds have acquired a minority stake in the EG group in a deal which could value the company at over £15bn. 

The outlet reported that the Abu Dhabi Investment Authority (ADIA) will increase its stake in the EG Group, while the lberta Investment Management Corporation (AIMCo) and PSP Investments have acquired shares for the first time.

The group is known for operating around 6,000 petrol station forecourts across ten countries.

The news comes months after the EG Group, along with equity firm TDR Capital, acquired a majority stake in Asda in a £6.8bn deal.  

The two groups acquired the majority stake in Walmart’s wholly-owned UK business on a debt-free and cash-free basis, with the transaction expected to be finalised in the first half of 2021.

Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the board.

At the time, the Issa brothers, backed by TDR Capital, said they would “support and accelerate” Asda’s existing business strategy. The group also revealed that Asda will remain headquartered in Leeds and will continue to be led by Roger Burnley who will form part of Asda’s board alongside representatives appointed by the Issa brothers, TDR Capital and Walmart.