EG Group is in talks to sell some of its UK assets to co-founder Zuber Issa as the fuel giant seeks lower its debt pile, the company has told investors.
The group, which is co-owned by Zuber and Mohsin Issa and private equity firm TDR Capital, told investors this week that it planned to reach a deal to offload some assets “in the near term” and “continued to have active discussions” with Zuber, the Financial Times reported.
According to a presentation seen by the publication, “the net cash proceeds would be used to further repay debt.”
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The group’s net debt stood at $5.9bn (£4.6bn) on 31 December 2023, a reduction from $9.6bn (£7.6bn) over the same period in 2022.
Last year, EG Group sold the majority of its UK and Ireland operations to Asda for an enterprise value of £2.27bn.
In November, EG Group said the proceeds of the supermarket’s acquisition had “significantly reduced its net leverage,” claiming this primed it for future “international growth and the energy transition”.
If agreed, the deal with Zuber could also more easily separate the assets of the billionaire brothers, as Zuber runs EG Group, while Mohsin focuses on Asda.
Last month, Zuber was said to have been considering selling his 22.5% stake in the supermarket giant to refocus on EG Group’s petrol station empire.
As rumours have swirled of a rift between the brothers, Mohsin insisted earlier this month that they “get on exceptionally well.”
He told the BBC: “We talk to each other probably two or three times a day. We’ve been very, very privileged. We have been on a journey and we have got a long way still to go.”
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