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Mohsin Issa, co-founder of the EG Group, a petrol station chain, is resigning as CEO as the company prepares for its initial public offering (IPO).
Russell Colaco, currently the chief financial officer of the UK-based company, has been chosen as Issa’s successor, the company announced on Friday.
The chain, co-owned by TDR Capital, a UK private equity firm, along with Issa and his brother Zuber, is looking into listing in New York after selling most of its UK operations to Asda, which is also owned by TDR Capital and Mohsin Issa.
“It’s the right moment for me to step back from daily operations at EG as it enters this new phase,” Mohsin Issa commented.
“With the sale of the majority of our UK operations to Asda, our company has evolved significantly,” he stated. “The US market is now our largest in terms of sales, and that’s where we need our key executives to be based.”
Since establishing the company in 2001, Mohsin and Zuber operated as co-CEOs of the petrol station chain. They also served together as co-CEOs of Asda after acquiring it with TDR in 2020.
However, Zuber stepped back from his roles at both EG Group and Asda last year, and in September, Mohsin also reduced his involvement with Asda.
Last summer, Lord Stuart Rose, the chair of Asda, expressed his embarrassment over the supermarket’s downturn, suggesting that Mohsin Issa should pull back from day-to-day tasks.
The Financial Times reported earlier this year that EG Group is considering selling some European assets and its operations in Australia to refocus on the US and reduce its debt in preparation for the IPO.
EG Group, with a potential IPO valuation of about $13 billion, aims to have roughly two-thirds of its revenue come from the US by the time of listing, compared to one-third last year.
New CEO Colaco, who joined last summer, stated, “I look forward to collaborating closely with the management team as we continue to grow and develop the business.”
Mohsin Issa will maintain a significant minority stake and will serve on the board as a non-executive director.
