US Listing on the Cards for Petrol Station Empire
- Issa Brothers considering $14bn float for EG Group
- EG Group leaning towards US listing
- Estimated valuation of £11.4bn
- Debt-fuelled expansion with Kroger acquisition
The Issa brothers are considering a potential initial public offering (IPO) of their petrol station empire, EG Group, in the United States for up to $14bn (£11bn). The company has been exploring options with banks for a possible listing in 2025, which could result in a significant payday for the billionaire brothers and private equity partner TDR Capital. While EG Group’s roots are in Blackburn, it is believed that they are leaning towards a US listing due to its largest market. The potential IPO could value the company at around £11.4bn – 13 times last year’s underlying earnings of $1.1bn. In recent years, EG Group has expanded through debt-fueled acquisitions, including a $2.2bn deal to acquire 800 convenience stores from retail giant Kroger in America. Last October, the company sold most of its British facilities to Asda for £2bn. Zuber Issa sold his 22.5% stake in Asda in June and used the proceeds to buy out EG’s remaining UK locations and launch a rival business, EG on The Move. He retains his shareholding in EG Group.
Factuality Level: 8
Factuality Justification: The article provides relevant information about EG Group’s potential listing and valuation, mentions their expansion plans, and includes details on their past deals and business operations. However, it lacks personal perspectives or opinions presented as facts.
Noise Level: 6
Noise Justification: The article provides some relevant information about EG Group’s potential listing and expansion plans but lacks depth and analysis, with a brief mention of Aldi’s growth in the UK at the end.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the potential IPO of EG Group, a petrol station empire, which could impact financial markets and companies involved in the transaction. The company is considering listing in the US for an estimated valuation of £11.4bn, and it has recently acquired 800 convenience stores from Kroger in America.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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