Allianz-Snam Consortium Awarded 49 Percent of Gas Connect Austria

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OMV, the international integrated oil and gas company based in Vienna, OMV Gas & Power GmbH (OGP) and the Consortium composed of Allianz, Europe´s largest insurer, and Snam S.p.A., Italy’s gas infrastructure operator, have signed an agreement for the sale and purchase of a 49% minority stake in Gas Connect Austria GmbH (GCA). Allianz Capital Partners, the alternative asset manager of Allianz Group, led this investment on behalf of its Austrian and German insurance entities.

The Consortium was selected as purchaser by OMV after a competitive auction process that started in the second quarter of 2016.

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 EUR 310 mn by a pool of international banks. According to the terms of the transaction, total cash consideration paid by the consortium to OMV will be equal to EUR 601 mn (including EUR 147 mn for the pro-rata reimbursement of the existing shareholder loan through 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 EUR 80 mn paid by GCA for the financial year ended 2015.

The closing of the transaction is expected by year-end and is conditional upon merger control clearance by German and Austrian authorities.

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