BILLIONAIRE Issa brothers are reportedly preparing to list their petrol station business, EG Group, in the US, aiming for a valuation of up to £13 billion.
This decision could mark another setback for the London Stock Exchange as EG Group aligns with the US, now its largest market, reported the Telegraph.
The float, planned for 2025, is expected to involve several major financial institutions, including Rothschild, Barclays, Goldman Sachs, JP Morgan, and Morgan Stanley. This strategic move would allow the Issa brothers and their private equity partners, TDR Capital, to realise significant value by reducing their stakes in the company.
EG Group, which recorded underlying earnings of £1.1 billion last year, could fetch a valuation approximately 13 times that figure, the report added.
Originally from Blackburn, the Issa brothers built their fortune from a single forecourt in Bury in 2001. Over the years, they expanded their operations globally, heavily relying on affordable debt to fund acquisitions.
In 2018, EG Group solidified its position in the US by acquiring 800 convenience stores from Kroger for $2.2bn (£1.7bn). Today, EG operates in 30 states and generates significant revenues from its American operations, which have become the company’s core focus.
As part of efforts to reduce debt, EG Group sold most of its UK facilities to Asda in October 2023 for £2bn. Zuber Issa later divested his 22.5 per cent stake in Asda, using the proceeds to acquire EG’s remaining UK sites and launch a rival company, EG On The Move.
This restructuring signalled a separation between the brothers, with Zuber stepping down as EG’s co-chief executive but retaining a shareholder role. Meanwhile, Mohsin Issa continues to oversee EG Group’s global operations, which generated $30.6bn in revenue last year across 5,500 locations worldwide.
The Issa brothers’ choice to pursue a US listing underscores growing concerns about the competitiveness of the London Stock Exchange. Industry experts, including former LSE chief Xavier Rolet, have warned that the City is losing its appeal for large companies. Recent years have seen other notable businesses, such as Arm and Ashtead, opt for US listings instead.
EG Group’s financial health has shown improvement after addressing its debt burden, which peaked at $10bn (£7.9bn) in early 2023. Borrowings have since fallen to $5.3bn (£4.2bn), prompting Moody’s to upgrade the company’s credit outlook from negative to stable. This enhanced financial position could attract investors as the float approaches.
Meanwhile, Mohsin Issa’s recent tenure at Asda has faced criticism, with the supermarket’s market share falling from 14.2 per cent to 12.5 per cent. Outgoing chairman Lord Rose described the decline as “embarrassing.” However, Mohsin retains support from John Carey, a former BP executive managing EG’s US division, and has diversified his investments into UK start-ups like Applied Nutrition.
EG Group has declined to comment on the planned float.
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