Asda’s billionaire owners close in on Caffe Nero takeover
The Issa brothers are closing in on a takeover deal for Caffe Nero
The billionaire brothers behind Asda are said to be closing in on a takeover deal for Caffe Nero after buying up the ailing coffee chain’s debts.
Mohsin and Zuber Issa have bought roughly £140m of loans from Swiss private equity firm Partners Group via investment bank Morgan Stanley, the Sunday Telegraph reported.
The deal puts the tycoons in prime position to take control of Caffe Nero if the company were to default on its loans.
Sources told the newspaper that Partners Group had written to Caffe Nero boss Gary Ford warning that they were concerned about the state of the company’s finances.
The billionaire Issa brothers who recently bought Asda for £6.8billion are poised to make a takeover bid for struggling Caffe Nero after buying up the company s debt.
Mohsin, 49, and Zuber Issa, 48, could be due to take control of the coffee chain after purchasing around £140million in loans from Swiss private equity firm Partners Group via investment bank Morgan Stanley, the Sunday Telegraph reports.
Buying up the debt pile puts the Issa brothers in a strong position for takeover if Caffe Nero defaults on the £145million of senior ranking debts due to be repaid in 2022.
City sources told the Sunday Telegraph that Partners Group had written to Caffe Nero s boss Gerry Ford, 62, on Friday over concerns that the company may breach banking covenants - the restrictions laid out in a lending agreement.
Billionaire brothers behind Asda close in on Caffe Nero takeover
Issa brothers buy up struggling chain s £140m debt pile to put them in pole position of a takeover if it defaults
18 April 2021 • 9:00am
The billionaire Blackburn brothers behind Asda are closing in on taking control of Caffe Nero after buying up the struggling coffee chain’s debts.
Mohsin and Zuber Issa, this week due to find out if regulators sign off their £6.8bn acquisition of Asda, are understood to have bought around £140m of loans from Swiss private equity firm Partners Group via investment bank Morgan Stanley.
Buying the loans will leave the Issas in a strong position to take control of Caffe Nero if the coffee chain were to default on its mountain of borrowing.