Germany consolidates Uniper shares to stabilize energy supply

MOSCOW, 21 Sep — PRIME. The German government will acquire a 99% stake in the German energy company Uniper to stabilize the country’s energy supply, Economics Minister Vice-Chancellor Robert Habeck said.

Earlier on Wednesday, it was reported that the German authorities would consolidate 99% of Uniper’s shares: first, an additional share issue at a price of 1.7 euros for a total of 8 billion euros would be carried out, which the federal government would fully buy out, then it would acquire the remaining share from Fortum for about 0.5 billion euros.

“State participation up to 93% worth about 8 billion euros, then we take 6% from Fortum – until now the main owner – for 480 million euros. This will be 99%. Guaranteed credit lines opened by Fortum (for Uniper – ed.), will be repaid by us, the total cost of both is 7.5 billion euros … Thus, Uniper will belong to the German state, we will be the owners for 99%,” the minister said.

According to him, the legal procedure for the transfer of the company will last three months, in accordance with German law.

Habek stressed that such a step could stabilize the energy supply in the country – Uniper receives 50% of gas supplies from Russia, its share in Germany’s gas supply is 40%, the minister recalled.

He also noted that the gas levy to support energy operators will be introduced in Germany, as planned, from 1 October.

German companies turned to the German government for financial assistance back in the summer against the backdrop of skyrocketing energy prices. Uniper requested 9 billion euros from the German government in July, citing a reduction in supplies from Gazprom. Largely to support specifically Uniper, as well as other energy companies in Germany, from October 1, a gas levy is introduced in the country – 2.4 euro cents per kilowatt-hour, which will be levied on citizens and companies.