Issa brothers plot £11bn float for EG Group
Billionaire brothers Mohsin and Zuber Issa are considering floating EG Group in the United States for as much as $14.3bn (£11.4bn).
It is understood the petrol station business is scheduling banks for a potential listing in 2025, which would see the bothers and their private equity partner TDR Capital receiving a significant payday, The Telegraph reported.
A deal to list in the US would come as it is now the firm’s single largest market and could see EG Group’s estimated valuation rocket by up to 13 times its underlying earnings of $1.1bn last year.
However, any potential float is still in its early stages and no final decisions have been made.
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The Issa’s have led a debt-fuelled expansion of the group in recent years, having acquired 800 convenience stores from US retailer Kroger in 2018 for £1.7bn.
While the brothers have built up EG Group’s estate in the US to operate across 30 states, the majority of its British operations were sold to Asda in October 2023 for £2bn.
This saw the British supermarket chain obtaining 350 petrol filling station sites and over 1,000 food-to-go locations.
In May, Zuber, who sold his 22.5% stake in Asda to private equity firm TDR Capital earlier this year, bought out the remaining UK sites, launching a rival company called EG On The Move. However, he retains his shareholding in EG Group.
EG Group declined to comment.
2 Comments. Leave new
Comment, these brothers somehow amassed billions to be able to buy Asda.
What they did was borrow billions.
I was in Asda a week ago. It was grubby with pallets and boxes around the shop. It was so scruffy, I don’t know what has happened but now it is a very low grade market. I also went to Morrison’s and Tesco and they are the same. Cleaners working while you shop.
The billionaires that never were. Good title for a book about these two chancers.
Everything built and acquired by enormous debt enabling the “billionaires” to extract vast sums for their own enrichment while running successful companies like Asda into the ground.
The media loves them though, always referring to “The billionaire Issa brothers”
They bought Asda by borrowing £6billion and that made them billionaires. Weird.
No doubt that they have successfully lined their own pockets, flogging a chunk of their failing Forecourt business to Asda for a couple of billion was slick. Should be criminal to be honest, Asda is now swimming in debt and losing 📉 market share dramatically. I think it’s going to die in its current form.
Still, the BiB’s must be laughing all way to their Private Equity partners office, even if as they have said, they didn’t understand how Private Equity works. It certainly worked for them.
Criminals should be in jail.