Allianz and Snam €601 million acquisition of 49% stake in Gas Connect Austria from OMV

15/12/2016
Private acquisition

€ 601 million

$ 675.961 million

Completed

15/12/2016


Overview:

  • A consortium of Allianz and Snam acquired 49% in Gas Connect Austria from OMV for €601 million as the Austrian oil and gas group sought to raise cash to offset reduced profits caused by the low oil price.
  • GCA controls 900km of gas pipelines in Central Europe, which supply Austria, Croatia, France, Germany, Hungary, and Slovenia. 
  • The buyers used an acquisition vehicle to complete the purchase, of which German insurer Allianz holds 60% and state-controlled Italian gas infrastructure company, Snam, holds 40%.    
  • The consortium secured €310 million in non-recourse financing from a pool of international banks to partially fund the acquisition. 
  • GCA was sold through a competitive auction process which began early in 2016.
  • Other bidders reputedly included EPH, a Czech energy investor, and Australian mining company, Macquarie. 
  • Rothschild and Unicredit were financial advisers to the buyers.

Ben Naylor - Regional editor

 

Jurisdiction:

Austria

Deal type:

Private acquisition

Practice area:

M&A

Governing laws:

Italy
Austria

Industry sector:

Oil and gas


Firms:

Party: Erste Group Bank (Lead arranger)

Party: KfW IPEX-Bank (Lender)

Party: Unicredit (Lender)

Party: BNP Paribas Fortis (Lender)

Lawyer: Conrad Andersen




Party: OMV (Seller)


Party: Erste Group Bank (Lead arranger)

Party: KfW IPEX-Bank (Lender)

Party: Unicredit (Lender)

Party: BNP Paribas (Lender)

Lawyer: Wolfram Huber


Party: Allianz (Acquirer)


Party: Allianz (Acquirer, Borrower)