Global Gas and Convenience Store Chain EG Group Considers IPO

(Bloomberg) -- EG Group, one of the world’s largest independent gas station and convenience store chains, is considering an initial public offering next year that could value it at more than 10 billion pounds ($12.4 billion), according to people familiar with the matter.

The U.K.-based company, whose owners include buyout firm TDR Capital, is in early discussions with banks, though no formal mandates have been awarded, said the people, who asked not to be identified because the discussions are private.

A share sale might take place in the second half of next year and the company is considering listing in the U.S., one of the people said. No final decisions have been made and the owners could change their plans, the people said.

A representative for EG couldn’t be immediately reached for comment. A representative for TDR Capital declined to comment.

EG Group was formed in 2016 when Euro Garages, run by billionaire brothers Mohsin and Zuber Issa, merged with TDR’s European Forecourt Retail Group. It has since grown through a series of acquisitions, giving it a presence in Europe and the U.S.

The company is meeting investors this week about raising a 1.3 billion euro ($1.4 billion) equivalent bond to fund its acquisition of Cumberland Farms. The acquisition will make EG the fifth-largest independent convenience store operator in the U.S, according to a note published by Fitch Ratings.

EG Group acquired 540 Woolworths sites in Australia last year. Other major 2018 acquisitions included Kroger Co.’s U.S. convenience store business, Esso petrol stations in Germany and Italy and NRGValue in the Netherlands.

The company has more than 5,200 sites in Europe, North America and Australia. It posted total revenues of about 12 billion euros for 2018, according to its last annual report.

To contact the reporters on this story: Laura Benitez in London at lbenitez1@bloomberg.net;Dinesh Nair in London at dnair5@bloomberg.net

To contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, ;Vivianne Rodrigues at vrodrigues3@bloomberg.net, Amy Thomson, Michael Hytha

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