KKR-backed oil and gas group targets UK fracking company’s assets
A private equity-backed oil and gas group is reportedly mounting an aggressive raid on the assets of a British fracking company.
Trans European Oil & Gas (TEOG), which is backed by Wall Street’s Kohlberg Kravis Roberts (KKR), is pushing IGas Energy to sell its conventional resources arm.
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TEOG was launched to acquire and operate onshore oil and gas fields across Europe.
Sky News first reported that the company is pressing IGas to divest its conventional resources arm, which includes assets in the East Midlands and Weald Basin, after building up a substantial voting position in the firm's secured bonds.
TEOG has reportedly hired investment bank Evercore to help it acquire the IGas assets.
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Igas said in a statement on the London Stock Exchange last week that the board “believes that there are divergent views among those bondholders”.
It added:
These include the preference for a capital restructuring of the group or a divestment of its conventional assets.
The board will continue discussions with its key bondholders aimed at aligning those views.
At the same time, the board is also continuing to pursue discussions with a number of strategic investors.