Austrian oil and gas firm OMV announced Monday that it is divesting itself of up to 49-percent of its currently wholly-owned Gas Connect Austria business.
Gas Connect Austria operates and constructs natural gas high-pressure pipelines in Austria.
Manfred Leitner, director of Downstream for OMV, commented in a company statement:
"As a first result of the ongoing review of our Downstream Gas asset portfolio, we decided to divest a minority stake in our regulated gas transportation business in Austria. In times of a difficult oil price environment, we are taking the appropriate measures to both optimize the portfolio and strengthen the Group’s cash flow and balance sheet.
"So far, potential investors have expressed a strong interest, as the regulated business is a stable profit contributor."
OMV said it is currently in the process of selecting an advisor to support the transaction. The deal is expected to be signed during the course of 2016.
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