German authorities announced the completion of the nationalization of Uniper

The German government has completed the process of nationalization of the German energy concern Uniper, reported in a joint press release from the Ministry of Finance and the Ministry of Economy and Climate Protection of the country. The German government now owns approximately 99% of the company’s shares.

“The federal government has acquired a stake in the energy company Uniper SE. In accordance with the decision taken in September 2022, the federal government receives about 99% of the company’s shares, ”the message says.

Such a step is needed to ensure the reliability of Germany’s energy supply, the statement explains. The European Commission approved this measure of assistance on December 20, 2022.

In a joint press release from the departments, it is reported that on December 19, at an extraordinary general meeting of Uniper shareholders, a capital increase of 8 billion euros was approved. As a result, the German government receives approximately 93% of the company’s shares at a price of 1.7 euros per share. In addition, the German government is acquiring an additional 6% stake from the previous majority shareholder, Finnish Fortum. The price for one paper is also 1.7 euros, which in total reaches about 500 million euros. An authorized capital of 25 billion euros was also created.

The statement clarifies that the German government is obliged to reduce its share to 25% plus one share no later than 2028. In order to extend this period, it is necessary to obtain the approval of the European Commission.

Bloomberg also wrote in September that the German authorities plan to nationalize Uniper. In this way, Berlin, the agency claimed, is trying to “prevent the collapse of the country’s energy sector.”

At the end of August Uniper requested from the state development bank of Germany to extend the credit line for another 4 billion euros, since the company has already completely used up the previous loan for 9 billion euros. The company indicated that they lose more than 100 million euros daily due to the reduction in Gazprom supplies and rising gas prices in Europe. Unjustified, from the point of view of Uniper, the reduction of supplies by Gazprom led to a record loss of the company in the amount of 12.4 billion euros in the first half of the year, as it had to buy falling volumes at higher prices.