Blackburn-based entrepreneur Zuber Issa has sold his stake in supermarket giant Asda and acquired the forecourt division of the EG Group, the company he co-founded with brother Mohsin in 2021.
Zuber’s share in Asda has been purchased by existing investor TDR Capital, increasing its holding to 67.5 per cent. Mohsin retains his 22.5 per cent share and Walmart holds the remaining 10 per cent.
At a price of £228m, Zuber has acquired the petrol forecourts business on which the EG Group’s tremendous success has been built, alongside a number of standalone foodservice locations. He steps down as co-CEO of the group, but retains his shareholding and will serve as a non-executive director.
The EG Group, headed by Mohsin as sole CEO, will now focus on its convenience food shops which now span three continents: North America, Europe and Australia. 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.
Zuber said: “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity. Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.
“With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
Lord Stuart Rose, chairman of EG Group, 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.”
Mohsin added: “I want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.”
Both deals are expected to complete in the second half of 2024. Asda is seeking a new CEO and EG Group has appointed Russell Colaco as group chief financial officer, succeeding Michael Bradley who has decided to step down to pursue other opportunities.