Mohsin Issa, co-founder of the petrol station chain EG Group, has announced his decision to step down as chief executive officer (CEO) as the company gears up for a planned initial public offering (IPO).

New Leadership Transition

Russell Colaco, who has been serving as the company’s chief financial officer, will take over the role of CEO, effective immediately. This leadership change was confirmed in a statement released by the company on Friday.

Strategic Shift Towards the US Market

EG Group, which is partially owned by UK private equity firm TDR Capital and co-founded by Issa and his brother Zuber, is considering a listing in New York. This comes in the wake of selling most of its UK operations to Asda, which is also affiliated with TDR Capital and the Issa brothers.

Issa commented on his departure, stating, “Now is the natural time for me to step back from my day-to-day duties at EG as it embarks on the next stage of its journey.” He further added that the company’s structure has significantly evolved following the sale of its UK business.

Changes in Company Structure

The company now emphasizes its expansion in the US, which has become its largest market by sales. Issa pointed out that the US is where EG needs to concentrate its executive leadership. After establishing the company in 2001, Mohsin and Zuber Issa previously served as co-CEOs, further solidifying their leadership roles following the acquisition of Asda in 2020.

Future Plans and Financial Outlook

In light of the recent management adjustments, the Financial Times reported that EG Group is contemplating the sale of portions of its European and Australian operations to prioritize its focus on the US market. This strategic refocus is also expected to help alleviate the company’s debt burden prior to the IPO, which could see the company valued around $13 billion. By the time of the IPO, the firm aims for approximately two-thirds of its revenues to originate from the US.

Colaco’s Vision for Growth

Russell Colaco expressed enthusiasm about his new role, stating, “I look forward to working closely with the management team as we continue to evolve and grow the business.”

Continuing Involvement of Mohsin Issa

Although Mohsin Issa will no longer serve as CEO, he will retain a significant minority shareholding in the company and will continue to contribute as a non-executive director on the board, ensuring his ongoing involvement in the business’s developments.