// Asda owner EG Group will reassure bondholders on Friday after auditor Deloitte’s sudden exit
// EG Group will also update bondholders on trading
Asda’s new owner EG Group is set to speak to bondholders on Friday, following its auditor Deloitte’s abrupt resignation.
The billionaire brothers behind petrol station empire EG Group, Zuber and Mohsin Issa are seeking to reassure debt investors over the group’s separation from Deloitte, which came as a result of corporate governance.
The Blackburn-based brothers will also update bondholders on trading and reassure them that the business remains robust.
- Now that it’s returned to British ownership, what’s next for Asda?
- Deloitte exits as Asda owner EG Group’s auditor after £6.8bn deal
EG Group told investors last week about Deloitte’s exit, which is understood to be partly due to concerns it does not have enough independent directors.
Deloitte has since been replaced by Big 4 accounting rival KPMG.
EG Group currently has more than €8 billion in debt buying petrol stations across the world including hundreds of sites in Australia and the US.
EG Group owns around 6000 petrol stations and posted nearly €20 billion (£18 billion) in revenue last year.
Deloitte’s reason for resignation remains unclarified, though governance concerns had increased, with Deloitte unsatisfied with EG Group’s internal controls not keeping pace with its growth.
EG maintained that Deloitte signed a clean audit for EG Group’s 2019 financial statements, and there have been no disagreements on any auditing or accounting matters.
Deloitte has served as EG Group’s auditor for the past four years.
The petrol station business is separate from the £6.8 billion Asda acquisition completed this month, with the Issa brothers and TDR set to take equal stakes in the group.