Unreported liabilities used to finance petrol station acquisition

  • Asda owners added £1.5bn of liabilities to fund EG Group petrol station deal
  • New liabilities not counted in Asda’s headline debt figures
  • Deal achieved through sale and leaseback deals, borrowing against ground rents, and a shareholder loan
  • Transactions part of financial engineering by TDR Capital and the Issa brothers
  • Brothers borrowed £7m from EG Group for private jets

Asda owners have added nearly £1.5bn of new liabilities to fund the buyout of EG Group’s petrol stations business. These liabilities, which are not included in Asda’s headline debt figures, were created through sale and leaseback deals, borrowing against ground rents, and a shareholder loan. The deal structure was communicated to financial stakeholders at the time, according to Asda. This financial engineering is part of a pattern used by TDR Capital and the Issa brothers in their retail and petrol empire. In addition, the brothers borrowed £7m from EG Group for their private jets.

Factuality Level: 3
Factuality Justification: The article provides relevant information about Asda’s new liabilities related to the buyout of EG Group’s petrol stations business. However, it includes unnecessary details about the Issa brothers borrowing money for private jets and a random mention of Sainsbury’s profit performance, which are tangential to the main topic. The article also lacks depth in explaining the implications of the new liabilities and the overall financial health of Asda.
Noise Level: 3
Noise Justification: The article provides relevant information about Asda’s new liabilities related to the buyout of EG Group’s petrol stations business. It includes details about the different forms of liabilities created and how they impact Asda’s debt load. The article also mentions the financial engineering tactics used by TDR Capital and the Issa brothers. However, the article includes some irrelevant information about Sainsbury’s profit expectations, which detracts from the main focus of the article.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about Asda’s debt load and the financial engineering used in the buyout of EG Group’s petrol stations business.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on financial topics, specifically the liabilities incurred by Asda for the buyout of EG Group’s petrol stations business. There is no mention of any extreme events or their impact.

Reported publicly: www.retailgazette.co.uk