Germany Plans to Sell Up to 30% Stake in Uniper
Germany plans to sell up to 30% stake in Uniper as it looks to recover some of the billions it spent rescuing the utility company during the energy crisis, according to sources. The move comes after Berlin bailed out Uniper in 2022, following Russia’s halt in gas deliveries due to Western sanctions over the Ukraine conflict. This rescue operation cost the German government a staggering 13.5 billion euros, resulting in a 99.12% stake in the company.
With energy markets now stabilizing, the German government is aiming to reduce its stake in Uniper in order to free up funds in the federal budget. The planned stock market sale, set to take place next year, may involve strategic investors and aims to decrease the government’s stake to between 70% and 80%. However, it should be noted that these plans are still in the early stages and are subject to change or delay.
Currently valued at 23.2 billion euros, the government’s stake in Uniper is expected to be sold at a discount. Neither Uniper nor the finance ministry have commented on the matter, citing EU requirements for Germany to reduce its stake to 25% plus one share by 2028. However, Harald Seegatz, Uniper’s works council head and deputy chairman of the supervisory board, has urged the government to remain a long-term major shareholder. Seegatz argues that this would allow Germany to control strategic energy assets, protect against takeovers or break-ups, and safeguard jobs.
The government’s commitment is also crucial for Uniper’s ability to maintain its investment grade credit rating, as it heavily relies on funding for its operations. It remains to be seen how Berlin will balance its interests between reducing its stake and ensuring a stable future for the company. Additionally, the EU has mandated Uniper to sell several assets as part of the bailout approval, including its Datteln coal-fired power plants, a move which Seegatz described as “painful.”
Analyst comment
Positive news: Germany’s plan to sell up to a 30% stake in Uniper is a positive development as it allows the government to recover some of the funds spent on the rescue operation during the energy crisis. The sale will free up funds in the federal budget and help in stabilizing the energy markets. However, the government needs to balance its interests between reducing its stake and ensuring a stable future for the company. The news is subject to change or delay.
