Barclays backing Issa brothers bid for Boots - report

Barclays is reportedly leading of group of banks backing TDR Capital and the Issa brothers on their multibillion pound bid for the Boots chemist chain.

Bloomberg on Thursday cited people familiar with the matter as saying that as part of the debt financing, the Barclays-led group is considering selling a large unitranche deal to private lenders. It was understood they are also discussing syndicating a senior and subordinated portion of the debt to investors.

The billionaire Issa brothers, Zuber and Mohsin, are seen as the party to beat ahead of the deadline for proposals later this week, Bloomberg said. They submitted the highest offer in the first round and are competing against Indian tycoon Mukesh Ambani, who is working on a bid with US private equity firm Apollo Global Management.

The financing is also expected to consist of a mix of currencies. According to Bloomberg the brothers and TDR have secured about £4bn in financing. Walgreens Boots Alliance has set an asking price of about £7bn.