Snam Sets Terms of Reserved Cash Call to Buy TAG Gas Pipeline

Italian gas grid operator Snam said its board had approved the conditions of a reserved capital increase of 502 million euros to buy the Trans Austria Gasleitung GmbH (TAG) pipeline carrying Russian gas into Italy.

 

Earlier in December Snam shareholders approved a cash call of up to 505 million euros to fund the acquisition of TAG from state-lender Cassa Depositi e Prestiti (CDP) with the proviso that should the final amount, after pricing, fall short, Snam would pay the difference in cash.

 

In its statement on Wednesday, Snam said it would pay CDP 3.058 million euros in cash.

 

Snam is looking to integrate Europe's patchwork of gas grids, in line with long-running government strategy to transform Italy into a southern European gas hub and help cut high energy prices.

 

Snam is controlled by CDP.