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Germany Moves To Nationalize Gas Giant Uniper In €8B Deal To Avert Energy Supply Crisis

Published 21/09/2022, 12:35
© Reuters. Germany Moves To Nationalize Gas Giant Uniper In €8B Deal To Avert Energy Supply Crisis
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  • Germany will nationalize Uniper SE (OTC: UNPRF) in a bid to save the country's largest gas importer, which was hit hard by Russian natural-gas cuts to Europe.
  • The German government would take a 99% stake in the energy giant and inject €8 billion.
  • The Federal Government will acquire the Uniper shares currently held by Fortum Oyj (OTC: FOJCY) (OTC: FOJCF) for €1.70 per share.
  • The credit line provided by Fortum, consisting of a €4 billion shareholder loan and €4 billion guarantee line, will be replaced by the Federal Government following the acquisition of the Fortum stake.
  • Uniper is Germany's largest gas importer and has been squeezed by vastly reduced gas flows from Russia, which has made prices soaring.
  • "Since the stabilization package for Uniper was agreed in July, Uniper's situation has further deteriorated rapidly and significantly; as such, new measures to resolve the situation have been agreed," Fortum announced in a statement.
  • "The amendment of the stabilization package announced in July was necessary against the backdrop of the further intensification of the energy crisis," said Uniper CEO Klaus-Dieter Maubach.
  • Fortum will deconsolidate Uniper as of the third quarter of 2022.
  • Photo via Company
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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