EG Group planning £1bn sale of US forecourts - report
EG Group is reportedly planning a £1bn sale of part of its US petrol forecourt empire as it looks to reduce its multibillion-pound debt pile.
According to Sky News, the company, which also owns Asda, has hired investment bankers to market several parcels of assets in the US.
City sources told Sky any transactions were likely to be structured as sale-and-leaseback deals, and could raise a substantial sum during the coming months.
Eastdil, the real estate-focused investment bank, is understood to have been hired to lead the sale process.
Sky said a source close to the company insisted that no firm decisions had been taken about any specific transaction.
EG has operations in 10 countries, including Australia, and an international property empire said to be worth roughly $10bn.
The source told Sky that in order to manage the company's liquidity effectively, the board could decide to reduce discretionary capital expenditure as an alternative to, or alongside, asset sales.
EG is understood to have a modest sum of debt maturing this year, with a multibillion-dollar portion of its borrowings due for repayment in 2025.