The new owners of Asda are take on £3.5bn of debt financing and sell the petrol station business.
The billionaire Issa brothers also intend to sell distribution sites once the takeover of the supermarket chain clears regulators.
Mohsin and Zuber Issa said on Wednesday that they will launch a loan facility worth €840m, and will issue around £2.75bn in loan notes to help finance the acquisition.
The Issa brothers and TDR Capital plan to sell some of the distribution network to property investors, once the acquisition is cleared by the UK’s competition regulator.
The Issa brothers said in a joint statement, “We are putting in place a robust capital structure to support that growth strategy, and we are confident that external investors will share our belief in Asda’s strong fundamentals and exciting future prospects.
“Looking ahead, and subject to the required regulatory approvals, we look forward to working with our Asda colleagues to build an even stronger, more differentiated retailer – including through the investment of more than £1 billion in the next three years to further strengthen the business and its supply chain.
“We are also excited about the proposed integration of the Asda forecourts into EG’s established UK operations, which we believe would underpin the future growth of the combined network.”
Asda chief executive Roger Burnley added, “Whilst the transaction remains subject to CMA (Competition and Markets Authority) approval, we will work closely with our new owners on how these Asda sites would operate as part of the EG Group under the Asda brand and ensure they continue to be a price leader in the fuel sector.
“We know that our customers are enduring a challenging time with the latest lockdown and we continue to serve them the best we can through our stores and growing online delivery slots.”
Gary Lindsay at TDR Capital said: “We are very proud to be investing alongside Mohsin and Zuber and supporting the next phase of Asda’s exciting growth journey.
“Asda has strong foundations and under the leadership of Roger and his team we look forward to seeing the business move from strength to strength in the future.”