// Asda billionaire owners hire adviser to offload the grocer’s logistics portfolio
// Issa brothers and private equity firm TDR Capital have lined up advisers Eastdil Secured
// The process is not expected to be finalised until the acquisition of the grocer is complete
Asda owners Issa brothers have reportedly drafted in advisers to prepare for the sale of the Big 4 grocer’s logistics portfolio.
The brothers who own petrol empire EG Group, and private equity firm TDR Capital have collectively lined up advisers Eastdil Secured to market Asda’s logistic network to prospective buyers.
However, the process is not expected to be finalised until the acquisition of the supermarket chain is complete, React News reported.
READ MORE:
- Walmart received £1.1bn Asda dividend weeks before the first lockdown
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The structure of the deal is yet to be finalised but is likely to comprise 25 assets including the supermarket’s distribution centres in Heston, Dartford, Bristol, Washington, Wakefield, Didcot and Lutterworth.
The proposed sale is expected to include around seven million sq ft worth of assets, which is expected to draw in between £1 billion and £1.2 billion and is likely to be divided into three to four packages.
It is also expected to attract many interested buyers due the surge in demand for warehouse space following the uplift in online retail during the Covid-19 pandemic.
Asda’s planned £6.8 billion takeover by the billionaire Issa brothers and TDR Capital is currently being investigated by the UK’s competition watchdog.
Earlier this month, the CMA said it formally launched its so-called phase one probe into the Asda deal after the European Commission referred the deal to the UK.
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So they are going to fund the purchase by selling off all the property and will by the end of it got the supermarket for free. Smarter than the Walmart lot
Looks more like asset stripping, 1000s of asda staff at these depots. Hope CMA is looking into this.
So if they sell off their distribution centres how are they planning to stock the superstores and supermarkets?
Like many stores, using third party logistic companies.
Through agency running the distribution centres instead of Asda
Lets say they sell all DC to DHL, DHL will supply and store get charge for delivery……i work in Bedford CDC, for every delivery to the store there is a charge plus they charge for collection of cages with waste, cupboard etc…..
Selling off the distribution centres before they’ve even bought the company? Something doesn’t add up here.
The deal won’t go true.They haven’t paid any tax for 5 years and have links to tax haven.They aren’t good people them 2.
Didn’t they receive honours by the Queen? That tells you all you need to know.
Dodgy isn’t the word I’d use when talking or dealing with them two, I’ve known dodgy motor dealers more honest than them.
This screams another Debenhams disaster all over again.
Private equity come in make loads of money strip the business sell off everything they own and then they collapse under all the debt piled on by them.
Hope the CMA don’t allow this deal to happen with them.
Is it me or do these two actually have the money to buy Asda? Every time this takeover is mentioned more questions about it appear. Why do they need to sell off the logistics side? Nothing adds up to include their finances. Have they just bragged their way through dodgy deals so far. I think Asda should withdraw from this sale before these two do a Philip Green and sail off into the sunset.
looking like this is true sell off something that you haven’t even got your hands on sell it before you even own it what about all the jobs that they getting rid of, they not thinking about other people look after yourself and **** on others
It seems to me that these two brothers are extremely dodgy. Every time a story appears about them, there are more questions than answers.
Dodgy, this stinks all those staff working through covid just to be made redundant and line the brothers pockets!
At least dick Turpin wore a mask
When is the decision from the Supreme Court due concerning the equal pay claim surely that decision will be made before the sale is finalised
Unfounded allegations such as not paying taxes. I can assure you taxes have been paid.
These brothers are smart businessmen. They scrutinise every aspect of business before coming in. Good luck to them and their families.
CODSWALLOP and BALDERDASH, they’re a pair of FLIM FLAM merchants
I work at the Washington depot mentioned which used to be run by wincanton for Asda so it would go back to been supplying Asda that way again so hopefully nothing changes job wise
Announcing they are wanting to sell off George and now distribution. Asset stripping much? ASDA also has a lot of property it owns… are they going to sell that and lease back?
Probably lease back for couple yrs. Just not to waste money on paying staff for redundancy. Afterwards slowly change to third party agency to run distribution and put all the payments on less profitable assets. Probably some warehouses are modern, worth a lot and some old, just good for space. Thats why multiple packages are mentioned.
Your right why would you sell off the in house distribution network making staff redundant streem lining an opperation yes but not selling off all distribution centres resuming in massive job losses a grocery is not a petrol station alot more complexity involved something smells here and there should be an investigation into the so-called British billioners asset strippers comes to mind
Asset stripping is a part of business, that allows it to be more streamline. In most cases it’s a smart move.
Stobart do Tesco’s logistics. Own account transport too expensive
I do like an Asda create your own pizza.
Well said we who work for asda think it’s not right there is always something with them and I work for George and pizza glad you like our pizza
There was also talk about them selling off George and the BWS part of the business. That’s part of the plan too.
They will lease it back at 4% annual rental u dumb twits
I work at the Bedford depot and check that stock is correctly picked in the freezer these arseholes better not lose my job as we are very worried in our department
This is what happens when you get jumped up desk clerks ticking boxes in the transport office of the future.
No one should be running a massive operation like this without being a driver first.
Goodbye triple pay on bank holidays guys.
Wow. Arnt you lot all so clever and Asda must be stupid. Sort yourselves out and be happy for people.
They sell it to their own company
The brothers I believe are billionaires on paper and not in the bank. They do not have the finance to purchase alone hence the partnership with TDR Capital.
Their fuel station business is based on reducing cost overheads by renting out retail space to the likes of Spar, Greggs & Subway to mention just 3. They claim to make more money from that side of the business rather than the fuel sales. Breaking up saleable parts of ASDA produces needed equity but I have to ask does it make it more attractive to Amazon who want to get a substantial foothold in the UK grocery trade. There may be more method in their madness yet.
You can’t still believe this union sponsored lie.
GMB have been spouting this nonsense since forever.
It’s how they get new members.
Asda been sold to people who don’t have actual cash, in my view. Walmart just wanted
They will sell asda every single square foot of it over I would say 2-3 years they dont have a clue how to run a supermarket all they do is rent spaces out I work in asda and you would not believe the amount of waste one night I could not get in a walk in chill because of the amount of waste I believe they will sell George that’s my department and the booze isle people will not pay the prices the whole of George will be shops there is a lot of space up there they are already putting a Costa coffee entertainment as well they will divide asda I can feel it and the person who said about equal pay it’s with the supreme court now we will properly lose