Salim Hasan, the chief operating officer of EG Group, also intends to step down, however,  the prospective changes will only happen if Zuber Issa completes a deal to buy a selection of sites from EG Group, according to a bond prospectus seen by Bloomberg News.

EG Group investors have been told that it is in “active discussions with Zuber regarding the sale” of UK assets.

The Issa brothers founded EG Group in 2001, and it is now co-owned by the brothers and private equity firm TDR Capital.  The brothers and TDR also bought Asda in 2021 in a £6.8bn deal.

According to Retail Gazette, Zuber has been exploring a sale of his 22.5% stake in Asda to enable him to focus his efforts on EG Group and has approached retailers and private equity firms looking for more than £500 million for his shares, according to reports.

It comes as brother Mohsin Issa, who has been running Asda, revealed this month that he would step back from day to day operations at the supermarket, and would hire a new CEO.

Bloomberg also reported that EG Group is eyeing a sale of Australian business after writing down the value of the business twice since its Aus$1.73bn (£900m) acquisition in 2018.

An EG Group spokesperson said it regularly reviewed the company’s portfolio. “If an asset is potentially more appropriately owned by a third party, then the board will consider it,” they added.

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Issa has approached buyout specialists and retailers as he looks to offload his 22.5% stake in the grocer, The Telegraph reported.

Zuber bought Asda, alongside brother Mohsin and private equity firm TDR Capital, in a £6.8bn deal in 2021.

It is thought he wants to focus his attention on EG Group, the petrol station empire that helped build the billionaire brothers’ fortune.

The newspaper cites City sources who suggest that Zuber could use the share sale funds to buy brother Mohsin out of EG Group.

The Telegraph said that TDR is exploring bringing in a CEO with more grocery experience to replace Mohsin, who has been at the helm of Asda since Roger Burnley left in 2021.

It’s reported that Zuber would prefer another investor to join TDR and Mohsin for Asda’s next phase, which could include a bold bid for Boots.

Any stake sale would have to be approved by Mohsin and TDR due to lock-in agreements. Zuber is said to be seeking more than £500m for his Asda stake.

He could explore selling the shareholding to TDR, although the private equity firm would likely offer a lower price than an outside investor.

Meanwhile Asda has accelerated the roll-out of its opening strategy, with plans to open 110 Asda Express stores in February in southern England.

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Growth in gross profit during Q3 came mainly from foodservice, grocery and merchandise. The Group’s Foodservice gross profit increased by 24% to $221m for the quarter, boosted by increased sales activity and improved margins across UK&I and Continental Europe, and driven by increased footfall, particularly across the Benelux region.

Zuber Issa and Mohsin Issa, CBE co-founders and co-CEOs of EG Group, said: “We continued to deliver upon our key strategic priorities in Q3, including growing gross profit in our foodservice, and grocery and merchandise businesses. In particular, foodservice – which continues to represent a significant growth opportunity globally – delivered a standout performance with gross profit up 24% in Q3, driven by increased revenues, as customers responded positively to our evolving and compelling proposition.”

Also in Q3, the Issas did a “ground-breaking deal” with Tesla to purchase their latest ultra-fast charging units. They said this demonstrated how they continue to progress their strategy on EVs and alternative fuels, as reported in Forecourt Trader.

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EG Group has agreed to a deal to acquire Tesla’s latest ultra-fast charging units for EG’s rapidly growing evpoint business across the UK and Europe.

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Casey’s General Stores in the US has announced an agreement to acquire 63 convenience stores from EG America, a subsidiary of EG Group.

The stores are located in Kentucky and Tennessee, and currently operate under the Minit Mart and Certified Oil banners. Both companies anticipate the deal will close later this year, subject to customary regulatory approvals.

“One of the key pillars in our strategic plan is to accelerate our store growth over the next three years and bring Casey’s to more communities. This opportunity is an excellent strategic fit as we look to add locations in Kentucky and Tennessee, which are both within our existing distribution footprint,” said Darren Rebelez, President and Chief Executive Officer at Casey’s.

The buyer is expected to retain the impacted employees at each store, with EG America cooperating to make their transition as seamless as possible. This initiative is one of the main five points of its three-year growth plan, which targets 350 new locations by the end of fiscal year 2026.

“We have built a strong and successful business over the years in these Certified Oil and Minit Mart stores, and we are proud of the hard work and dedication shown by our team members there. Casey’s is an excellent operator, and we believe these stores and team members will continue to thrive under their ownership,” added Nick Unkovic, President of EG America.

EG Group has been reorganizing its retail strategy in the U.S. after announcing its ambition to reduce total net leverage through debt reduction and free cash flow generation. Since then, the British company has been divesting different assets to streamline operations through its EG America subsidiary.

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