THE EG Group has announced that it has agreed to sell its remaining UK forecourt business and some foodservice locations for £228m to co-founder Zuber Issa.

On completion of the transaction, Zuber will step down as co-CEO of EG Group.

Mohsin Issa will continue to lead the business as sole CEO.

Zuber will retain his existing shareholding in the company and remain on the board as a non-executive director.

TDR Capital and Mohsin’s shareholdings in EG Group also remain unchanged. The transaction is expected to complete in the second half of 2024. 

The news came as it was also announced Zuber Issa has sold his stake in Asda to the supermarket chain’s private equity backer TDR Capital.

The sale brings TDR Capital’s share in the supermarket group to 67.5%, while 22.5% is still owned by Zuber’s brother, Mohsin.

Zuber and Mohsin Issa bought Asda from Walmart in 2020, in a £6.8 billion deal with the backing of TDR Capital. Walmart still holds a 10% stake.

In a joint statement Mohsin and Zuber said: “We have had an amazing journey together building EG Group over the last 20 years and we look forward to continuing to work closely together as fellow Board members and shareholders in EG Group.

"The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business. 

"We are both – and the wider board – laser-focused on our key growth opportunities. 

"Encouragingly, following the significant progress to strengthen our balance sheet, we have a capital structure which allows us to take advantage of the opportunities ahead of us continuing to deliver our best-in-class services to our customers  around the world.

“Given our shared background in building great businesses, the Board and everyone at EG understand Zuber’s desire to return to his entrepreneurial UK roots by acquiring the remaining UK forecourt business including new to-industry developments and certain standalone food service concessions – as well as dedicating more time to his family and our charitable activities."

Chairman of EG Group, Lord Stuart Rose said: “On behalf of the Board of EG Group, I would like to thank Zuber for his incredible leadership, which has been  central to building one of the largest and most entrepreneurial private companies in the UK. 

“EG Group is a UK success story on the global stage that has created significant opportunities for people in Blackburn and other local communities in the Group’s international markets – and pioneered the foodservice model at the roadside. 

“With Mohsin remaining as sole CEO, the business is in the right hands and well-placed for further success. I look forward to continuing to work with Mohsin and 
Zuber on the Board of EG Group as we focus on growing the  international business and ensuring EG plays a key role in the energy transition.

EG Group has also today announced the appointment of Russell Colaco as Group Chief Financial Officer. 

Russell  will succeed Michael Bradley who has decided to step down to pursue other opportunities. 

Mohsin and Zuber added:  “Following Michael Bradley’s decision to step down from his current Group CFO role, and as we take the opportunity to reshape our leadership team to reflect the continued evolution of the business along with the  relative size and importance of the US business, we are delighted that Russell Colaco will join as our new Global Chief Financial Officer, bringing significant international CFO experience. 

“We want to sincerely thank Michael Bradley for his contributions as Group CFO and wish him the very best for the future.”

The company said it will use the proceeds from the divestment of its remaining UK forecourt business to repay debt, following the significant deleveraging and refinancing activity last year. 

Zuber and Mohsin co-founded EG Group in 2001 and the business has grown from a single site in the north of England to a global company with more than 5,500 locations. 

EG Group is the third-largest independent convenience  retail chain globally, the fifth in the US, and second in Continental Europe and Australia. 

The business will maintain a presence in the UK through Cooplands, its wholly owned bakery business, the Group’s rapidly  growing charging business, evpoint, and its Starbucks franchise business.

The company will continue to deliver its strategy to deploy emerging fuels and EV chargers, under its proprietary  brand, evpoint, across the existing site network, as well as third-party locations.