Asda co-owner and one-half of the billionaire Issa brothers, Zuber Issa is considering selling his 22.5% stake in the British supermarket giant, reports on Sunday revealed.
It’s believed the younger of the two brothers is weighing up the sale as he plans to transition back towards their longstanding petrol station business EG Group.
Zuber is also believed to be considering switching his focus from retail entrepreneurship to charity work if he sells his stake, reports added.
A figure of £500 million has been quoted for Zuber’s stake by sources but it is believed to be difficult due to ‘lock-in agreements’ between the brothers and TDR – with all parties required to approve the sale.
Zuber Issa, alongside his brother Mohsin and the private equity firm TDR Capital, acquired Asda three years ago in a deal valued at £6.8 billion.
Asda was purchased through private equity, meaning the increase in interest rates last year forced the owners to manage debt through actions such as buying the UK arm of EG Group.
Such decisions attracted the attention of the government, with MPs questioning how Asda manages its finances and operations and in particular what the offshore companies attached to the supermarket are being used for.
Mohsin Issa has taken up the role as Asda boss since the takeover, but speculation is beginning to mount about his position at the top.
TDR, which owns a controlling stake in the company, is believed to be looking at bringing in a new CEO to replace Mohsin, according to speculation across industry sources.
“Everyone they have spoken to so far has said [Asda has] no chance until Mohsin disappears,” said a senior retail source.
Last week, it was revealed that Mohsin has struck up a romantic relationship with a former partner at EY, the accountancy firm which acted as auditor to Asda up until July last year.
It is believed the revelation has caused a slight rift in the family, with Zuber’s wife and Mohsin’s former wife reported to have been close.