The German government’s stake in energy company Uniper SE is attracting early interest from companies including Abu Dhabi’s Taqa, according to people familiar with the matter.
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(Bloomberg) — The German government’s stake in energy company Uniper SE is attracting early interest from companies including Abu Dhabi’s Taqa, according to people familiar with the matter.
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Taqa is one of those who may be scrutinizing Uniper as Germany looks for ways out of its hold, the people said, asking not to be identified because the information is confidential. Any transaction could value Uniper at 10 billion euros ($10.3 billion) or more, the people said.
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Norway’s Equinor ASA was also exploring a possible deal, the people said. Uniper’s board of directors is being advised by Goldman Sachs Group Inc., the people said.
The German government is working with advisers as it considers whether to sell its stake in the company, Bloomberg News reported. It has been considering whether to sell the securities to a single buyer, as well as the possibility of splitting its stake through a stock offering or so-called “re-IPO,” according to the people.
UBS Group AG and Roland Berger have been advising the German government on options to divest its Uniper stake, while Citigroup Inc., Deutsche Bank AG and UBS are lined up to plan a stake sale if that option is pursued, reports the Bloomberg News.
Germany pulled out of Uniper, the country’s biggest buyer of Russian gas, after Russia invaded Ukraine in 2022. Although the state owns more than 99% of the company, the rest is traded on the Frankfurt stock exchange, where the company’s market value is approximately 18 billion. Any deal is expected to come at a discount given the lack of funding.
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Other applicants may also enter the fray, while potential bidders may decide not to apply, the people said. Other interested parties may eventually join the idea of divesting Uniper’s assets, which include power and coal power plants in Germany, the Netherlands and the UK, as well as hydro and nuclear power plants in Sweden.
The European Commission requires Germany to reduce its stake in Uniper to no more than 25% and one share by the end of 2028 when it agrees to a bailout. A spokesman for Germany’s finance ministry said the federal government is currently exploring options to meet that obligation, although no final decision has been made on the timing and nature of the transaction. Market sales are the main option being considered, although the government is also exploring off-market options, the spokesman said.
Reuters reported on Monday that the German government is considering a full sale of its stake, citing unidentified people. Representatives for Equinor, Goldman and Uniper declined to comment, while a spokesperson for Taqa was not immediately available for comment.
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State-controlled Taqa, formally known as Abu Dhabi National Energy Co., has been eyeing deals overseas as the United Arab Emirates looks to diversify its portfolio. Equinor, which has a market value of about $72 billion, has also been active as it seeks to increase its investments in renewable energy.
In October, the Stavanger, Norway-based company acquired a $2.5 billion stake in Danish wind energy company Orsted A/S. Equinor has also been ramping up its oil and gas production in the North Sea as Europe tries to replace Russian supplies.
—With the help of Anthony Di Paola, Eva Brendel, Kamil Kowalcze and Petra Sorge.
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