Uniper expects financial assistance of more than 50 billion
2022.11.23 08:19
Uniper expects financial assistance of more than 50 billion
Budrigannews.com – Berlin said it would need to inject as much as 25 billion euros ($25.8 billion) in additional equity into the struggling gas importer in order to cover losses incurred after Russia cut supplies to Uniper, the largest corporate casualty of Europe’s energy crisis thus far.
The revised bailout agreement brings the total for Uniper’s nationalization to more than 51 billion euros, reflecting the elimination of a gas levy intended to assist German gas importers with additional costs.
Following Berlin’s decision to eliminate the levy, which would have allowed gas companies to pass on the majority of the higher procurement costs to customers, sources stated last month that tens of billions of dollars in additional funding were required to stabilize Uniper.
According to Uniper CEO Klaus Dieter Maubach on Wednesday, “it’s about nothing less than a substantial portion of Germany’s gas bill, which will now be paid out of tax revenues – and not, as originally planned, through a gas surcharge.”
At 1242 GMT, Uniper’s shares, which are down 84% year-to-date, were trading 4.5 percent lower.
According to the most recent agreement, Germany’s largest gas importer will subscribe to tranches of authorized capital worth up to 25 billion euros to cover losses from pending Russian gas volumes until 2024.
At a meeting on December 19, investors will vote on the deal, which includes up to 33 billion euros in state-backed equity, up to 18 billion euros in state-lender KfW credit lines, and 500 million to buy out Uniper parent Fortum.
After Russia’s Gazprom (MCX:), Uniper nearly went bankrupt.In what Berlin claimed was retaliation against sanctions regarding the war in Ukraine, Moscow denies, its largest supplier halted gas flows earlier this year.
This not only resulted in Uniper’s largest-ever net loss of 40 billion euros, but it also compelled Germany to nationalize the company to avoid what it referred to as a Lehman Brothers-like effect in the energy sector.
Uniper stated that it was in talks with the EU Commission, which must approve the rescue deal in accordance with state aid and merger control laws. It also stated that it expected to receive approval from Brussels prior to the December shareholder meeting.
