Interest Payments Revealed: £202m on External Debt, £106m on Lease Liabilities, and £56m on Intercompany Loans

  • Asda paid £375.1m in interest following its £6.8bn takeover deal
  • Issa brothers and TDR Capital put in less than £800m of equity for the acquisition
  • £202m of interest on external debt, £106m on lease liabilities, and £56m on intercompany loans were paid
  • CMA approved the deal after the Issa brothers agreed to sell 27 of their petrol filling stations

Asda reportedly paid £375.1 million in interest following its £6.8 billion takeover deal last year, according to recent accounts from The Times. The Issa brothers and TDR Capital, who own EG Group, put in less than £800 million of equity when acquiring the supermarket chain. The deal involved a debt-free and cash-free basis for Asda’s majority stake acquisition by both groups. In October 2020, Walmart confirmed that the Issa brothers and TDR Capital took equal shareholdings in the transaction, which valued the supermarket at £6.8 billion. The Competition and Markets Authority (CMA) approved the deal after the Issa Brothers agreed to sell 27 of their 395 EG Group petrol filling stations to close the takeover.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Asda’s interest payments following its takeover deal, the involvement of the Issa brothers and TDR Capital, and the approval from the Competition and Markets Authority. It does not include any digressions, misleading information, sensationalism, redundancy, or personal perspective presented as a universally accepted truth.
Noise Level: 4
Noise Justification: The article provides relevant information about Asda’s financial situation after its takeover and the interest paid on debt. It does not contain any irrelevant or misleading information, but it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Asda, Issa brothers, TDR Capital, Walmart
Financial Rating Justification: The article discusses financial aspects such as interest payments, debt, equity investment, and the acquisition of Asda by the Issa brothers and TDR Capital. It also mentions the Competition and Markets Authority’s approval for the deal.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses Asda’s takeover deal and its financial implications.

Reported publicly: www.retailsector.co.uk