EG Group finance boss considered departure after Asda acquisition

17722
Issa brothers face fresh blow as Moody downgrades EG Group debt
Moody's cites unexpected departure by Deloitte as auditors among reasons for EG Group debt downgrade.
// EG Group finance boss mulled exiting the company after concerns over corporate governance
// Michael Hughes planned to resign and take up a post at a different company at the end of year
// Hughes has now decided to stay with EG Group for an unspecified period

Asda owner EG Group’s chief financial officer Michael Hughes reportedly considered quitting the petrol station empire following its acquisition of the Big 4 grocer.

EG Group is led by the Issa brothers, who are seeking to rapidly expand the business and are currently working on shaking off concerns over corporate governance – which is why Hughes almost exited.

He had planned to resign and take up a post at a different company at the end of the year, which would have raised concerns among EG Group’s debt investors, The Sunday Times reported.


READ MORE:


EG Group most recently had to reassure its investors following its auditor Deloitte’s abrupt resignation.

The billionaire brothers behind the petrol station empire EG Group, Zuber and Mohsin Issa said the resignation came as a result of corporate governance.

Deloitte has since been replaced by Big 4 accounting rival KPMG.

Nevertheless, Hughes has decided to stay with EG Group for an unspecified period.

The company said that Hughes had “not resigned, and nor does he intend to resign, as chief financial officer of EG Group”.

With the backing of private equity firm TDR, EG  Group embarked on an acquisition spree that has left the Issa brothers in charge of an empire of more than 6000 petrol stations in 10 countries.

EG Group recently beat US buyout giant Apollo to take over Asda for £6.8 billion, returning the supermarket to UK ownership for the first time in 21 years.

“Michael is a very high-quality and valued member of the senior leadership team that is fully committed to driving the future performance of the group, the continued investment in its systems, and ensuring it is well placed for future corporate activity,” EG Group said.

Click here to sign up to Retail Gazette’s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here