Uniper nationalization approved

Shareholders gave acceptance at Monday’s extraordinary general meeting for Germany’s nationalization of the utility, reports Reuters.
Photo: Wolfgang Rattay
Photo: Wolfgang Rattay

German power company Uniper, also the nation’s main natural gas importer, has been under heavy pressure since Russia invaded Ukraine and sparked a major energy supply crunch in Europe.

Monday, Uniper’s shareholders gave their nod allowing the German state to complete its salvage action as agreed among Berlin and now-former majority owner Fortum, reports Reuters.

This action includes a capital injection of EUR 8bn to be provided by Germany’s federal government, which is also ready to acquire the Finnish utility’s stake in Uniper, thus leaving the state with an approximate equity position of 98.5% in the crisis-stricken company.

Furthermore, up to EUR 25bn will be raised by issuing new Uniper shares, according to the news agency.

Uniper encountered major turbulence when Russia began dialing down on gas flow to the Europe’s largest economy, and to fulfill supply commitments to municipal utilities and industrial companies, Uniper was obliged to buy fuel at higher prices from other markets.

Daily losses totaled more than EUR 200m, and in September German Vice Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeck announced the state’s plan to attain majority interest to save Uniper from insolvency.

Uniper’s share price is up by 4.4% in Monday trading.

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