Austrian gas pipeline operator Gas Connect Austria GmbH, a wholly owned unit of OMV Gas & Power GmbH, has entered into an agreement to sell 45% in its subsidiary AGGM Austrian Gas Grid Management AG.
The interest will be split equally between regional gas distribution companies EVN Netz GmbH, OO Ferngas Netz GmbH and Gasnetz Steiermark GmbH. Gas Connect did not volunteer any details with regard to financial terms or other deal specifics such as timeframe for completion. The transaction needs to be cleared by competition regulators.
As a result of the deal, Gas Connect and AGGM will strengthen their ties with Grid Level 1 distributors and the divestment comes as proof of Gas Connect’s commitment to establish partnerships with industry operators. According to Stefan Wagenhofer, chairman of AGGM’s supervisory board, the new ownership structure will strengthen further AGGM’s long-standing and successful connections with distribution system operators. AGGM looks forward to working alongside its new partners to tackle the challenges created by the new market model, Wagenhofer added.
AGGM was created in 2002, the year in which Austria liberalised its gas market. In 2003, the company was assigned the role of control manager for the Eastern area. At the start of this month, AGGM was put in charge of Austria’s entire distribution network as per the provisions of the new Gas Market Model Ordinance 2012.