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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

(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.

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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.

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