New Asda owning Issa brothers sell stake in petrol station giant EG Group
The two brothers behind a huge deal to buy Asda have sold a stake in their petrol station business worth millions.
The deal will see two Canadian pensions funds invest in EG Group, while Abu Dhabi’s sovereign wealth fund will increase its stake.
The Canadian firms are Alberta Investment Management Corporation, which owns London City airport, and PSP Investments, the pension fund for Canadian public services.
As a result, Sky News reported, EG, which owns more than 6,000 forecourts around the world, will be worth more than £15bn.
Reports of the cash injection came as the company revealed that sales fell a fifth in the three months to the end of September due to the coronavirus pandemic.
Investors had been concerned about the size of EG’s £8.5bn debt pile, but the new funding could pave the way for a blockbuster listing.
It comes just weeks after it was announced that Mohsin and Zuber Issa would buy Asda from US giant Walmart for £6.8bn.
The deal will see the Leeds-based supermarket come back under UK control after two decades in American hands.
A spokesman for EG Group said: “We are delighted that our shareholders have been able to attract high-quality investors; that demonstrates confidence in them and their ability to generate stakeholder value.
“The investment will not result in any change to the ownership of EG Group, proceeds will not be for use by EG Group, and will have no effect on our business.
“Given that the investment is a private matter for our shareholders, we are not able to comment further.”