Businessman Zuber Issa has sold his stake in Asda to the supermarket chain’s private equity backer.
The sale brings TDR Capital’s share in the supermarket group to 67.5%, while 22.5% is still owned by Zuber’s brother, Mohsin.
The deal is set to complete in the third quarter of this year, the company said.
Zuber and Mohsin Issa, from Blackburn, bought Asda from Walmart in 2020 in a £6.8bn deal with the backing of TDR Capital. Walmart still holds a 10% stake.
The private equity firm is also heavily invested in the Issa brothers’ petrol station forecourts business, EG Group.
Zuber Issa will also step down as co-chief executive of EG Group after reaching an agreement to buy its remaining UK forecourt business and some food service sites for £228m.
EG Group said it will use the cash to repay debt and shore up its balance sheet.
Zuber will keep his shareholding in EG and continue as a non-executive director, while his brother will become sole CEO.
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: “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.”
Meanwhile, the GMB union said the deal would spell bad news for shoppers and staff, accusing TDR Capital of “asset-stripping” at the supermarket.