• Thursday, May 23, 2024

Business

Zuber Issa to step down as EG Group CEO

Zuber and Mohsin Issa

Pramod ThomasBy: Pramod Thomas

ZUBER ISSA, one of the co-founders of EG Group, is poised to step down from his role as co-chief executive of the multinational petrol station empire, clearing the path for his brother, Mohsin Issa, to take the helm, reported The Times.

The shift in leadership will result in Mohsin Issa, Zuber’s older brother and co-owner of Asda alongside private equity firm TDR Capital, taking over control of the company.

According to reports, Salim Hasan, chief operating officer of EG Group, also plans to resign from his position.

The Issa brothers, in partnership with TDR Capital, jointly own EG Group, a venture they started back in 2001. They acquired Asda in a monumental £6.8 billion transaction in 2021.

Zuber Issa is concurrently exploring the potential sale of his substantial 22.5 per cent stake in Asda, a move valued at over £500 million.

With this move, he plans to refocus his attention and resources on further developing EG Group’s endeavours.

Meanwhile, Mohsin Issa, who currently oversees operations at Asda, has disclosed his intention to gradually step back from his day-to-day responsibilities, signaling the imminent appointment of a new CEO to lead the retail giant.

As per Bloomberg, EG Group is keen to divest its Australian operations, despite just five years in the market. Acquired in 2018 for £900m, the group’s 540 petrol station sites have seen their value written down twice.

In a bid to alleviate its debt burden, EG Group adopted a strategic approach last March, selling and leasing back 415 US convenience stores to Realty Income for £1.2bn. Subsequently, in a separate deal, EG Group sold its British forecourts business to Asda for £2.27bn.

“If an asset is potentially more appropriately owned by a third party, then the board will consider it,” said a spokesman for EG Group.

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