Be transparent about Asda’s financing, MEPs demand

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MPs have ordered the boss of Asda’s private equity fund to explain the grocer’s “opaque” financial structure.

Earlier this month, TDR leader Gary Lindsay gave evidence to Parliament’s Business Committee, which is investigating the controversial Asda takeover.

However, he did not tell MPs that he and another director of the buyout group had left three Asda boards before Christmas.

Let's be clear: MPs order Asda private equity fund boss to explain financial structure

Let’s be clear: MPs order Asda’s private equity fund boss to explain grocer’s ‘opaque’ financial structure

TDR Capital backed the £6.8 billion takeover of Asda, led by brothers Mohsin and Zuber Issa, which left Britain’s third-largest supermarket group saddled with huge debts.

Some fear that servicing the debt mountain has prevented owners from investing more in Asda.

Lindsay’s appearance before MPs prompted the GMB union, which represents Asda workers, to write to committee chairman Liam Byrne about the changes to the board.

TDR subsequently wrote to Byrne to clarify that he remained committed to Asda and that his representation on the Jersey-based grocer’s main board had not changed.

In a letter seen by The Mail on Sunday, Byrne again asked Lindsay whether Asda’s ultimate investment holding company was based overseas to reduce tax liabilities. Byrne described Asda’s corporate structure as “opaque”.

MPs have already heard that Asda does not use Jersey to avoid paying corporation tax and pays all its taxes in the UK.

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