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Cerberus Capital taking over Asda? Another private equity success story in the making


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Rumours reach my foxhole that they're going to use the commercial land assets as collateral for some chunky loans against the business.Overseen by ex Debenhams retail epert as below:D:ph34r: and and ex boss of Asda,who by implication msut have been very successful running it.

Sounds reminsicent of the classic Private Equity play book.So msot likely-UK banks- are going to load up on commercial real estate as it becoems worth a lot less.

Calling @spygirl you heard anything about it? Cerberus isn't mentioned,not sure whether they have a stake in Appollo???Cerberus is the name I heard.

 

https://www.retailgazette.co.uk/blog/2020/09/deadline-looms-for-asda-takeover-bids/

According to The Telegraph, Apollo Global Management and rival Lone Star Funds are preparing takeover offers for £6.5 billion supermarket chain that currently owned by Walmart.

The bids are reportedly due today.

Both firms had called on the help of retail veterans former Debenhams boss Rob Templeman and former Asda boss Paul Mason respectively, to help advise on their takeover offers.

The Telegraph also highlighted potential interest from a third bidder such as the owners of EG Group, the Issa brothers.

Walmart is expected to maintain a minority stake in Asda if a private equity sale proceeds.

The process to sell Asda was launched after a £12 billion merger with rival Sainsbury was blocked by the CMA in 2019.

Edited by sancho panza
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  • sancho panza changed the title to Cerberus Capital taking over Asda? Another private equity success story in the making
14 hours ago, spygirl said:

Walmart wants rid of Asda.

They thought they'd hit dirt with Sainsbury taking them.

Theyll take anyones money.

 

Believe it or not the British Supermarket industry is about the toughest in the world (partly because we have more large chains than any other country).

There are only 2 bidders left according to the Sunday Times as Lone Star walked away due to a £500m court case regarding till workers and equal pay.

So its down to Apollo (who will separate out the freeholders and load it up with debt) and TDR / Eurogarages.

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9 minutes ago, eek said:

Believe it or not the British Supermarket industry is about the toughest in the world (partly because we have more large chains than any other country).

There are only 2 bidders left according to the Sunday Times as Lone Star walked away due to a £500m court case regarding till workers and equal pay.

So its down to Apollo (who will separate out the freeholders and load it up with debt) and TDR / Eurogarages.

Ive got my eye on Eurogarage.

I reckon they are going to blow.

Theres just the margins in what they do to cover the insane leverage and debt they are carrying.

 

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Dont say sold. Says preferred bidders.

https://www.ft.com/content/e8cfbc0e-aece-4a53-8d66-120503246b8e

A consortium of TDR Capital and the two brothers behind the EG Group petrol station business has been selected as preferred bidder for UK supermarket chain Asda, according to two people briefed on the matter.

I still cant grasp how EG work/make money/basically operate.

Top rated comment:

PE, heavily leveraged, bosses with little relevant experience who have built their business on junk bonds - What can possibly go wrong? 
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The Issa brothers, who started out with a single petrol station forecourt in Bury, Greater Manchester, have built EG Group into a sprawling fuel and retail business with a debt-propelled acquisitions spree spanning Europe, the US and Australia. 

They have become one of the biggest issuers in Europe’s leveraged loan and junk bond markets alongside telecoms giants Altice and Liberty Global.

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6 hours ago, spygirl said:



The Issa brothers, who started out with a single petrol station forecourt in Bury, Greater Manchester, have built EG Group into a sprawling fuel and retail business with a debt-propelled acquisitions spree spanning Europe, the US and Australia. 

They have become one of the biggest issuers in Europe’s leveraged loan and junk bond markets alongside telecoms giants Altice and Liberty Global.

The BBC's article on the Issa brothers was rather more glowing, I was about to eat my hat then I read about the debt pile and dodgy Muz dealings. About right...

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6 hours ago, spygirl said:

 

PE, heavily leveraged, bosses with little relevant experience who have built their business on junk bonds - What can possibly go wrong? 
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Well, exactly -- what exactly can go wrong?  Heads, it's a success and they retire loaded; tails and the business folds but they walk away with the multiple millions that they've paid themselves thus far via the loans. 

The question I always have is 'why do people lend them the money?'  Over and over again it ends up with the lenders losing.

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1 hour ago, MvR said:

They're the ones who bought up Northern Rock's loan book, amongst others. Maybe they have a plan to allow borrowers to pay off their debt via some sort of indentured servitude... ?

rumoru I've heard is that the CRE will get dfloated off,25% back office staff to get laid off

1 hour ago, dgul said:

Well, exactly -- what exactly can go wrong?  Heads, it's a success and they retire loaded; tails and the business folds but they walk away with the multiple millions that they've paid themselves thus far via the loans. 

The question I always have is 'why do people lend them the money?'  Over and over again it ends up with the lenders losing.

Because the taxpayer keeps covering the losses and the bonueses get paid as the interest rolls in.

1 hour ago, One percent said:

Asda is rank.  They don’t put them in deprived areas by mistake. 

It's been redundant ever since alid started wiping the floor with them.

Edited by sancho panza
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2 hours ago, dgul said:

Well, exactly -- what exactly can go wrong?  Heads, it's a success and they retire loaded; tails and the business folds but they walk away with the multiple millions that they've paid themselves thus far via the loans. 

The question I always have is 'why do people lend them the money?'  Over and over again it ends up with the lenders losing.

'people' don't.  The banks do, and then magic it out of thin air.  The bank managers and staff have targets for the amount and volume of loans lent.  Don't lend to the borderline cases now, and you WILL get sacked.  Lend to the borderline cases and they go belly up, you MIGHT get sacked and you will have collected a number of months salary and bonuses.

Basically, until directors personal wealth is tied to loans, no way of stopping it.

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2 minutes ago, Chewing Grass said:

Saw something the other week that looked at Millionaires in the USA and revisited them every 5 years and something like only 6% of them were still Millionaires after 10 years.

Quite staggering when you think about it.

Interesting but are you sure on that? I have always maintained that it's easy to make money but not so easy to keep it, saying that 6% seems really low.

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16 minutes ago, spunko said:

Interesting but are you sure on that? I have always maintained that it's easy to make money but not so easy to keep it, saying that 6% seems really low.

That was hard to re-find.

Millionaires-Chart-Web-11-17-11.png

https://www.mercatus.org/publications/government-spending/millionaires-unlikely-stay-millionaires-long

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Not suitable as Eurogroups books are going to be an absolute fuckup.

A bit simplistic but no less effective

https://suite.endole.co.uk/insight/company/04246195-euro-garages-limited

 

Going from fuckall in 2006 to ...

 

33761780-8784271-image-m-52_160138019007

The brothers holding trophies at an awards ceremony in London in 2018, which saw them named EY Entrepreneur of the Year

Cleetus dun won himself a darn shiny geegaw down in Londony.

These sort of awards are always handed to the cretin whove generated loads of fees for City types.

The company is always fucked ove by their gormless fuckwittery.

Theres is an award for being an Entrepreneur- its called making money doing your own thing.

 

 

 

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On 29/09/2020 at 14:09, Chewing Grass said:

 

That's "income millionaires", not the usual meaning of the word.  That million may include one-off bonuses.

Once they see how much tax they are paying, they find ways round it next year.....

 

 

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On 29/09/2020 at 23:09, Chewing Grass said:

absolutely tosh.

My taxable income is around 1/5th of what it was at the peak of my earnings.  My tax owed last financial year was about 2500AUD, legally.  No funny business, just made sure that we had deductible expenses, plus the way that company dividends can be timed tax effectively.  If I'd stayed in a PAYE role, for the same income it would have been bout 40k.  

Taxable Income figures mean nothing.

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