Glencore-backed energy group CNG reviews options amid supplier collapses
A commercial energy supplier backed by Glencore, the
FTSE-100 commodities trading giant, has drafted in City advisers to undertake a
strategic review amid the turmoil in Britain's gas supply market.
Sky News has learnt that CNG Group, which is based in
Yorkshire, has hired Interpath Advisory to run a process that could involve a
break-up or outright sale.
The company, which operates about 46,500 meter points across
the UK, is said to be seeking expressions of interest from potential investors
or acquirers in the coming weeks.
Glencore, which ranks among Britain's biggest listed
companies, is "a long-standing supplier [to] and shareholder in the
group", according to CNG's most recent set of accounts filed at Companies
House.
CNG supplies small and medium-sized businesses directly, and
also provides shipping services and wholesale gas to retail suppliers operating
in the market.
has been largely the consequence of soaring wholesale
prices, has sparked an unprecedented crisis across the sector and demands for
government intervention.
One market insider said they expected CNG to be broken up
into its separate divisions and sold.
CNG said in a statement: "As a responsible board, we
are taking the opportunity to consider our strategic options.
"There is no burning platform, but ongoing developments
in the energy market mean that it makes sense to assess the best way forward
for the various parts of our business."
A Glencore spokesman declined to comment.
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