Mohsin and Zuber Issa used loans from their vast business empire to pay for private jets. Photo: John Super
Billionaire Issa Last year the brothers borrowed a further $9 million (£7 million) from their petrol station empire to pay for their private jets, new documents show.
EG Group lent money to private jet companies controlled by Mohsin and Zuber. Issa in 2023. Both are based in the Isle of Man.
As a result of the payments to Clear Sky LP and Clear Sky 2 LP, the total amount owed to EG increased to US$50 million, compared with US$37 million last year.
This includes US$39 million in unsecured loans provided to EG. originally gave to his brothers to buy planes in 2018.
It comes at a turbulent time for EG as Zuber tries to separate himself from the brothers' vast business interests, including supermarket Asda.
Earlier this year, The Telegraph reported that Zuber was trying to sell his 22.5% stake in Asda , with the buyer expected to be existing private equity partner TDR Capital.
This will give TDR a majority stake in Asda, which was previously transferred to TDR. under Mohsin's management since the brothers bought the business for £6.8 billion in 2021.
It has since emerged that Zuber plans to step down as co-chief executive of EG, the business he started with a single gasoline engine. station in Bury 23 years ago.
Mohsin is ready to take the helm as sole chief executive. He recently denied rumors of a rift with Zuber.
Zuber's resignation will coincide with a separate deal to acquire EG's remaining UK operations, which is expected to be completed in the second quarter of 2024.
Details of the proposed acquisition were outlined in the company's latest annual report, which said it was “currently engaged in active discussions with Zuber Issa and his advisors.”
It said: “Following the completion of the sale to Zuber Issa of the majority of the remaining UK and Ireland business, he intends to step down as co-CEO while remaining on the EG board as a non-executive director.”
Takeover First will affect EG gas stations and eliminate the company's electric vehicle charging division, as well as its Cooplands and Starbucks divisions.
They hope to use the funds to reduce the company's $6 billion debt. which led to huge financial costs after interest rates increased.
Last year alone, the company paid off $949 million in debt financing, up from $728 million in 2022. EG, which has expanded rapidly over the past two decades, is now winding down operations.
Creditors were told in a private call in March that bosses were focused on “getting our estate in order.” EG owns thousands of gas stations around the world and was founded by Zuber in 2001.
A few years later, he brought Mohsin into the fold, and the business subsequently became the basis of a multi-billion dollar family fortune.
p>
An EG Group spokesman said: “EG Group has provided loans to Clear Sky companies at commercial interest rates to service external debt of third parties. All loans have been fully disclosed in EG Group's accounts and remain so.
These specific loans were originated at rates comparable to the average commercial interest rate, and these interest rates have been identified and recognised. within the financial income of EG Group. These loans will be repaid in due course.”
Recent Comments