Snam, Allianz Buy 49% of Austria's Gas Grid
Austria's OMV has sold a 49% minority stake in Gas Connect Austria to a consortium of Allianz and Snam; it retains a controlling 51% stake in GCA.
Italian gas grid Snam said the acquisition will be completed through a jointly controlled vehicle owned 60%/40% by Allianz and Snam, which has secured binding non-recourse financing commitments up to €310 mn by a pool of international banks.
Snam added that OMV would be paid €601mn cash for its 49% interest, which includes €147mn for pro-rata reimbursement of an existing shareholder loan by entering into a new shareholder loan with GCA at the time of closing. The economic effect date of the transaction is January 1 2016.
OMV is entitled to keep the full dividend in the amount of €80mn paid by GCA for the financial year ended 2015.
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GCA's headquarters (Photo credit: Gas Connect Austria)
GCA operates a 900-km-long national high-pressure gas pipeline system in Austria. Snam said that, as a central hub in the European natural gas network, GCA makes a substantial contribution to the natural gas supply in Austria and other countries including Germany, France, Slovenia, Croatia, and Hungary, and that its entry and exit volume in 2015 - because of high transit volumes carried -- was 152bn m3. In financial year 2014, GCA's turnover was €248mn.
OMV CEO Rainer Seele said during the September 22 signing: “With the sale of the minority stake of 49% in Gas Connect Austria, we have increased OMV's financial strength. OMV retains control of GCA with 51%, so that this key infrastructure remains in Austrian hands.”
In June, Reuters reported that Macquarie and Czech firm EPH were also expected to submit rival bids for the 49% GCA interest.
Allianz and Snam separately already own international gas transportation assets, with Allianz a major shareholder in the Norwegian subsea pipelines consortium Gassled, and Snam a shareholder in the UK-Belgium interconnector, Austria's TAG pipeline and southwest France's TIGF regional gas grid.
Mark Smedley