Wealthy Brothers Issa Reduce Business Portfolio in Preparation for High-Value Initial Public Offering
In a significant move, global forecourt empire EG Group has announced plans to sell its operations in Australia and Italy, as well as considering the potential sale or Initial Public Offering (IPO) of its US business. This strategic shift comes as the company seeks to reduce debt and reposition itself for future growth.
The deal with Ampol, worth A$1.1 billion (£810.3 million), will see EG Group sell its 500 fuel and convenience sites in Australia. The transaction, which is subject to regulatory approvals, is expected to be completed by mid-2026. This marks EG Group’s strategic exit from the Australian market.
In addition, EG Group has confirmed the sale of its Italian division, though the specifics of the deal have not been disclosed. The company is also reportedly preparing to float in New York, with a potential valuation of around $13 billion.
The decision to sell off parts of its business comes as EG Group, co-owned by private equity giant TDR Capital and founded by Mohsin and Zuber Issa, grapples with a decline in sales and a pre-tax loss of $195 million in 2024. The decline in sales was attributed to the fall in fuel prices and the impact of divestments over the past two years. However, the company managed to generate a profit of $205 million from these divestments.
Russ Colaco, CEO of EG Group, expressed gratitude to the Australian leadership team and all colleagues for their contributions to the business. Following the sale, Zuber Issa stepped down from his role as co-chief executive and became a non-executive director.
The group's plans for a potential float in New York are currently uncertain and under debate. While TDR Capital, owning 50% of EG Group, has been preparing for an IPO of the whole group in New York, billionaire co-owner Zuber Issa has publicly urged selling off the US business separately to pay down debt faster, opposing the full float plan. The company is still considering options, including divestment of the US business or a US market float under the Cumberland Farms Group name.
This strategic shift towards debt reduction also includes EG Group's move of its global headquarters from Blackburn, UK, to Charlotte, North Carolina, aligning with its US market focus. The company remains focused on executing its strategy and building a platform for further growth.
Sources:
- The Guardian
- Reuters
- Bloomberg
- EG Group Press Release
EG Group's decision to sell its Australian and Italian divisions, as well as potentially float in New York, signifies a significant shift in its finance, business, and investing strategies. This move, driven by a decline in sales and debt reduction, could see the company regroup and reposition itself for future growth in the markets, particularly in the United States. The plans for a possible Initial Public Offering (IPO) could potentially value the company at around $13 billion.
