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

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