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The federal government could start selling Uniper in 2024
January 31, 2024, 5:29 p.m
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The federal government apparently wants to begin reducing its stake in the nationalized energy supplier Uniper this year. However, Berlin initially wants to retain the majority in order to improve the company’s creditworthiness.
The federal government could start selling shares in Germany’s largest gas company Uniper this year. It is possible to sell larger packages to investors or to put more shares on the stock exchange again as part of a so-called re-IPO, said two insiders. However, the federal government will probably initially retain the majority in order to guarantee good creditworthiness. The federal government nationalized the company during the energy crisis in 2022. He holds around 99 percent of Uniper with a value of around 23.8 billion euros.
The Federal Ministry of Finance did not want to comment on the plans. “We do not comment on speculation,” said a spokesman. He pointed out that the EU Commission had obliged the federal government to reduce its stake in Uniper to a maximum of 25 percent plus one share by the end of 2028 at the latest.
Bloomberg previously reported that a larger stake could be sold in late 2024 or 2025. The utility is in discussions with potential consultants, but the process is still in its early stages. Uniper also did not want to give a timetable for the exit. CEO Michael Lewis had emphasized in recent weeks that this was a matter for the federal government. “We do not comment on discussions along the way, but of course we are in constant communication with the federal government as our owner,” the group now explained.
Eon’s former power plant subsidiary was in trouble as a result of the Russian gas supply stoppage. The federal government protected the largest German gas company from bankruptcy in 2022 with equity capital of 13.5 billion euros and credit lines of around six billion euros. Uniper has now fully repaid loans granted by KfW. With the recovery from the energy crisis, the wind has changed for Uniper. In the first nine months of 2023, Uniper achieved consolidated profits of 9.8 billion euros.
Meanwhile, Uniper wants to hold on to its gas business in the coming years. “Germany needs gas until at least the end of the 1930s,” said CEO Michael Lewis recently. “We are the largest importer of gas in Germany. We want to retain this position.” In addition, the company also wants to participate in the construction of new gas power plants. “When the power plant strategy comes, we can start immediately,” said Lewis. The plans are ready. After receiving a building permit, it takes around five years to complete.
Nevertheless, Uniper should become greener overall. “According to our strategy, it is very clear that we will have significantly more renewable energies in our portfolio in five years.” Uniper will operate fewer hard coal-fired power plants. “We will only have one coal-fired power plant left. That is Maasvlakte in the Netherlands. And that too will be shut down before 2030.”