Snam enters the TAP (trans Adriatic Pipeline) with a 20% stake. The announcement came early on Tuesday morning with a press release in which the company led by Carlo Malacarne specified that it had signed an exclusive agreement with Statoil Holding Netherlands BV for the purchase of the 20% stake held by the Norwegian company. The operation had been in the air since this summer when Malacarne himself confirmed the rumors about Snam's willingness to enter the project.
The agreed purchase price is equal to 130 million Euros. Furthermore, Snam will take over from Statoil the shareholder loan currently in place in favor of TAP for a nominal amount of 78 million euros. The consideration will be subject to adjustment at closing. As a result of the transaction, Snam will take over from Statoil all rights and commitments for the implementation of the project.
TAP is the company in charge of the development of the Trans Adriatic Pipeline project, from the border between Turkey and Greece to Italy along the Southern Corridor, which will allow the transport of gas produced from the Shah Deniz II field in Azerbaijan to European markets thanks to multi-year ship or pay contracts – through the Snam Rete Gas pipeline system. The main shareholders of Tap are: Enagas, Fluxys, the latter allied with Snam in other European gas pipelines, with shares of 16% and 19% respectively, BP with 20%, Statoil with 20%, Socar with 20% and the Swiss Axpo (5%).
“TAP is decisive for the diversification of gas supplies in Europe through the development of the Southern Corridor as an important new route for gas flows from Azerbaijan and potentially from other producing countries” – commented Snam CEO Carlo Malacarne. Entry into the project will make it possible to consolidate the primary role of Snam and of Italian infrastructures in facilitating greater competitiveness between sources and strengthening the security of supply for the European gas system. The operation – he concluded – follows the signing of the Memorandum of Understanding with SOCAR last September”.
With the exclusivity agreement, Snam and Statoil undertake to promptly proceed with the sale of Statoil's stake in TAP, subject to the exercise, within 15 days, by the other TAP shareholders, of their respective pre-emption rights and co-sales as well as the approval of the TAP board of directors and further conditions precedent according to market practices.
The closing of the transaction is expected by the end of 2015.
Snam made use of Banca Imi for the valuation and financial activities and of Orrick Herrington & Sutcliffe (Europe) for the legal and contractual aspects
