Home Business Germany nationalizes gas importer Uniper Reuters

Germany nationalizes gas importer Uniper Reuters

45
0


© Reuters. FILE PHOTO: The Uniper logo is seen at the company’s headquarters in Düsseldorf, Germany, July 8, 2022. REUTERS/Wolfgang Rattay/File Photo

BERLIN/HELSINKI (Reuters) – Germany has agreed to nationalize Uniper by buying Fortum’s stake in the gas importer to secure jobs and keep the business going, three stakeholders said on Wednesday.

The deal involves a capital increase of 8 billion euros ($7.94 billion) at an issue price of 1.70 euros per share, excluding shareholders’ subscription rights, Uniper said in a statement.

After completion of the capital increase, which will be signed exclusively by the German government, and the share purchase, the government will own about 99% of Uniper, the economy ministry said.

The package “creates a clear ownership structure to secure Uniper, and therefore energy, for companies, utilities and consumers,” it said.

German Economy Minister Robert Habeck will make a statement at 08:30 (06:30 GMT) on Uniper, it said.

Russia’s supply cuts and last month’s shutdown of the Nord Stream 1 pipeline left Uniper, Germany’s biggest gas importer, in dire financial straits, prompting a rescue package with Berlin that was agreed in July.

Fortum will be repaid its parent company’s €4 billion loan and be released from its €4 billion parent guarantee it gave to Uniper earlier this year, Fortum said.

($1 = €1.0075)

Previous articleAsset manager Neil Veitch discusses the best picks as volatility persists
Next articleThe role of private finance is neglected in the journey to net zero