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Snam, Macquarie, EPH to place binding bids for Gas Connect Austria - sources

Published 27/07/2016, 01:58 am
© Reuters.  Snam, Macquarie, EPH to place binding bids for Gas Connect Austria - sources

MILAN-FRANKFURT, July 26 (Reuters) - At least three bidders including Italy's Snam SRG.MI and Australia's Macquarie MQG.AX are expected to place binding bids later this week for a 49 percent stake in pipeline company Gas Connect Austria, sources close to the matter said.

Gas grid company Snam is bidding in a consortium with Germany's Allianz ALVG.DE , while Macquarie and Czech energy group EPH are expected to bid on their own, the sources said on Tuesday.

Final bids, expected to be in the region of 500 million euros ($549 million) to 600 million, are due by Friday, a banker involved in the process said.

Two other sources said bids were expected before the end of July.

Snam, Macquarie, Allianz and EPH declined to comment.

Austrian energy group OMV OMVV.VI , which is 31.5 percent owned by the state, is selling a 49 percent stake in Gas Connect Austria to raise cash to fund investments as oil prices fall.

A spokesman for OMV declined to comment on the specifics of the bid process, saying only: "We want a signature by the end of the year".

With ultra-low interest rates, infrastructure investments generating steady regulated returns are attracting increasing interest from financial players looking for safe yields.

Gas pipelines are also drawing interest from industrial players as Europe seeks to integrate its patchwork of gas grids.

Snam, Europe's biggest gas pipeline operator, is looking to play a leading role in the consolidation process designed to boost security of supply.

The company, which has a strategic alliance with Belgium's Fluxys FLUX.BR , already controls French grid TIGF and Austrian pipeline TAG and recently bought a 20 percent stake in the Trans Adriatic Pipeline that will bring Azeri gas into Europe. ($1 = 0.9106 euros)

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