(Bloomberg) -- Germany’s government took a first step toward privatizing Uniper SE, the utility it nationalized at the peak of Europe’s energy crisis in 2022 after Russia curbed gas flows to the region.
The nation’s finance ministry said an initial public offering is its preferred option for selling the company, according to a statement. It’s also considering off-market sale alternatives.
The announcement marks a momentous step after the bailout just under two years ago, which was one of the largest in German corporate history. At the time, the utility — once the biggest buyer of Russian gas in Germany — was forced to pay hundreds of millions of euros a day for alternative supplies and was only able to do so with state support.
In contrast to other state holdings in companies like Commerzbank AG or DB Schenker, the proceeds of a Uniper sale would flow back into the regular budget and might be used to narrow a shortfall of more than €12 billion in the government’s 2025 finance plan.
“Germany is currently examining all options available to fulfill this exit commitment,” the finance ministry said Thursday. “So far, no final decision has been made regarding the timing and form of a potential transaction.”
Earnings Recovery
Uniper’s earnings have made a significant recovery since the hit they saw from the energy crisis and the company is now preparing for new investments to aid the nation’s energy transition. It set aside nearly €3 billion ($3.3 billion) for payments linked to the bailout in recent quarters, and funds will likely be transferred to the German state at the beginning of next year.
It has also been awarded more than €13 billion in damages against Russia’s Gazprom PJSC, an amount that would also be passed on to taxpayers, though it’s unclear whether and how much of it Uniper will be able to recover from the gas giant anytime soon.
The German state owns more than 99% of Uniper. At the time of the nationalization, it committed to reduce its holding to a maximum of 25% plus one share by 2028, as agreed with the European Commission.
Uniper welcomed the finance ministry’s announcement and said it will work closely with the German state to progress all necessary preparations.
--With assistance from Eva Brendel.
(Updates with background on Uniper’s performance from sixth paragraph.)
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