June 15, 2020 / 4:51 PM / 19 days ago

Austria's Verbund bids for OMV's stake in gas pipeline operator

FILE PHOTO: The logo of Austrian oil and gas group OMV is pictured at the rooftop of its headquarters in Vienna, Austria May 12, 2020. Picture taken May 12, 2020. REUTERS/Leonhard Foeger

VIENNA (Reuters) - Austrian utility Verbund (VERB.VI) has made a binding offer for OMV’s (OMVV.VI) 51% stake in gas pipeline operator Gas Connect Austria, it said on Monday.

Verbund did not give financial details of the proposed deal. In 2016 OMV sold a 49% stake in Gas Connect for 601 million euros ($678 million) to German insurer Allianz (ALVG.DE) and Italian gas grid company Snam (SRG.MI).

The oil and gas group said in March that it plans to sell its remaining stake in Gas Connect Austria among other assets, and was in exclusive talks with Verbund.

“The offer is subject to agreement between Verbund and OMV on the transaction contracts and the approval of the supervisory board. The offer is otherwise confidential,” Verbund said.

OMV wants to sell $2.3 billion of assets by the end of next year to help fund a $4.7 billion deal to make it the majority owner of plastics maker Borealis.

OMV had no immediate comment on the announcement.

Reporting by Kirsti Knolle; Editing by Jan Harvey

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