Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Snam eyes German and Austrian assets in expansion drive

Published 28/04/2016, 01:59 am
UPDATE 1-Snam eyes German and Austrian assets in expansion drive
SRG
-
OMVV
-
MGX
-
FLUX
-

(Recasts, adds management comments)

MILAN, April 27 (Reuters) - Italian gas transport group Snam SRG.MI is weighing a move for German gas grid business Thyssengas as well as pipeline company Gas Connect Austria as part of plans to expand in Europe, outgoing CEO Carlo Malacarne said on Wednesday.

Snam, controlled by Italian state fund Cassa Depositi e Prestiti (CDP), aims to play a leading role in Europe's plans to integrate its gas grids to boost security of supply.

Sources have said that Macquarie MGX.AX is trying to sell Thyssengas, while Austrian energy group OMV OMVV.VI is looking to sell up to 49 percent of Gas Connect Austria. offers have been made but we are looking at the assets," Snam's Malacarne told reporters after a shareholder meeting.

The company, which has a strategic alliance with Belgium's Fluxys FLUX.BR , already controls French grid TIGF and recently bought a 20 percent stake in the Trans Adriatic Pipeline (TAP).

"Germany, Austria and France are strategic countries for us," Malacarne said.

His comments were confirmed by Marco Alvera, who is slated to be appointed new CEO by the Snam board later on Wednesday.

Malacarne said the group is also looking at the 17 percent stake in Greek gas grid operator DESFA put up for sale by Azeri state energy company SOCAR.

Snam, which counts China State Grid among its leading shareholders, is considering a partial or full demerger of its gas distribution unit Italgas to help to fund overseas growth in its core transmission business.

The plan, which is likely to result in the distribution of Italgas shares to Snam shareholders, will be finalised by the end of June, Malacarne said, adding that such a move could help to reduce the group's debt.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.