BILLIONAIRE brothers Mohsin and Zuber Issa obtained an additional $9 million (£7.2m) loan from their petrol forecourts business last year to fund their private jets, reported The Telegraph.
The loan, channeled through their companies Clear Sky LP and Clear Sky 2 LP based in the Isle of Man, brings their total borrowing from EG Group to $50m (£40m), up from $37m (£29.5m) the previous year. This includes £31m initially borrowed to purchase the jets in 2018, the report added.
The move comes amid efforts by Zuber Issa to step down from the brothers' extensive business ventures, including Asda supermarket. Zuber is reportedly aiming to sell his 22.5 per cent stake in Asda to private equity firm TDR Capital, which would grant TDR majority control over Asda, currently managed by Mohsin.
Additionally, Zuber plans to step down as co-chief executive of EG Group, the company he co-founded over two decades ago.
Details of the prospective acquisition were described in the company’s latest annual report, which said it is “currently engaged in active discussions with Zuber Issa and his advisers”.
“On completion of a sale to Zuber Issa of the majority of the retained UK&I business, he intends to step down as co-CEO, remaining on the EG Board as a non-executive director," it added.
The move, while encompassing the bulk of EG Group's UK ventures, is notably slated to exclude certain business segments such as its electric car charging division, as well as its Cooplands and Starbucks franchises.
The plan is to utilise the earnings to reduce the firm's £4.8 billion debt load, which has led to significant financial expenses following the escalation in interest rates. Last year alone, the company incurred £756.3m in debt finance costs, a notable increase from £580.2m in 2022.
The business empire was founded by Zuber in 2001 and he brought Mohsin into the fold several years later. Later, it has undergone remarkable expansion over the years and EG now owns thousands of petrol stations around the world.
“EG Group provided loans to the Clear Sky companies at a commercial rate of interest to service external third-party debt. All loans have been fully disclosed in the EG Group accounts, and continue to be so," an EG Group spokesman was quoted as saying.
"These specific loans have been provided at rates comparable to the average commercial rate of interest, and that interest has been identified and recognised within EG Group’s finance income. These loans will be repaid in due course.”
Rachel Reeves