The boss of Asda’s private equity owner is being ordered by MPs to explain the grocer’s ‘opaque’ financial structure.
Earlier this month, TDR chief Gary Lindsay gave evidence to Parliament’s Business Committee, which is investigating Asda’s controversial takeover.
However, he failed to tell MPs that he and another director of the buy-out group had quit three of Asda’s boards before Christmas.
Come clean: The boss of Asda’s private equity owner is being ordered by MPs to explain the grocer’s ‘opaque’ financial structure
TDR Capital backed a £6.8 billion buyout of Asda led by brothers Mohsin and Zuber Issa that left Britain’s third largest supermarket group saddled with huge debts.
There have been concerns that servicing the debt mountain has stopped the owners from investing more in Asda.
Lindsay’s appearance before MPs prompted the GMB union, which represents Asda workers, to write to committee chair Liam Byrne to point out the board changes.
TDR later wrote to Byrne to clarify that it remained committed to Asda and that its representation on the grocer’s main Jersey-based board of directors had not changed.
In a letter seen by the The Mail on Sunday, Byrne has again asked Lindsay whether Asda’s ultimate investment holding company was based offshore in order to reduce tax liabilities. Byrne described Asda’s corporate structure as ‘opaque’.
MPs were previously told that Asda did not use Jersey to avoid paying corporation tax and that it paid all of its UK taxes.
