GERMANY’S government took a first step towards privatising Uniper, the utility it nationalised at the peak of Europe’s energy crisis in 2022 after Russia curbed gas flows to the region.
The nation’s finance ministry said an initial public offering is its preferred option for selling the company, according to a statement. It’s also considering off-market sale alternatives.
The announcement marks a momentous step after the bailout just under two years ago, which was one of the largest in German corporate history. At the time, the utility – once the biggest buyer of Russian gas in Germany – was forced to pay hundreds of millions of euros a day for alternative supplies and was only able to do so with state support.
In contrast to other state holdings in companies like Commerzbank or DB Schenker, the proceeds of a Uniper sale would flow back into the regular budget and might be used to narrow a shortfall of more than 12 billion euros (S$17.3 billion) in the government’s 2025 finance plan.
“Germany is currently examining all options available to fulfil this exit commitment,” the finance ministry said Thursday. “So far, no final decision has been made regarding the timing and form of a potential transaction.”
Earnings recovery
Uniper’s earnings have made a significant recovery since the hit they saw from the energy crisis and the company is now preparing for new investments to aid the nation’s energy transition. It set aside nearly 3 billion euros for payments linked to the bailout in recent quarters, and funds will likely be transferred to the German state at the beginning of next year.
It has also been awarded more than 13 billion euros in damages against Russia’s Gazprom, an amount that would also be passed on to taxpayers, though it’s unclear whether and how much of it Uniper will be able to recover from the gas giant anytime soon.
The German state owns more than 99 per cent of Uniper. At the time of the nationalisation, it committed to reduce its holding to a maximum of 25 per cent plus one share by 2028, as agreed with the European Commission.
Uniper welcomed the finance ministry’s announcement and said it will work closely with the German state to progress all necessary preparations. BLOOMBERG
