ASDA - comment

The exit of Zuber Issa from ASDA was announced on Friday but had been expected for some time. The price paid by TDR for the stake is not public, but a figure of £500m has been used in the press, implying £2.3bn of equity value under the bonds. As we said in April, TDR taking majority control of ASDA will change little at the grocer. We expect the timing indicates that the search for a new CEO is making progress. Mohsin Issa will now be the sole CEO at EG Group and will have less time to focus on ADA. Zubar Issa will purchase the remaining EG FOrecourt business in the UK for £228m.