Berlin is examining potential buyers for Uniper, a deal that could include the government selling its entire stake in the energy company worth $18.8bn, according to Reuters.
The German government owns 99.12% of the company after it was nationalised in 2022 during the European energy crisis. Berlin is considering a partial share sale of about 25% as the preferred option. It also contemplated exiting its stake in one fell swoop, said sources familiar with the matter.
The parties that have been approached for a full sale include Canadian fund Brookfield. A full sale to a private equity fund could be one of the biggest in Europe in recent years.
Germany’s finance ministry, which oversaw the government’s stake in Uniper, said on Monday that the government was examining all scenarios for reducing its stake. It reiterated that the main option for reprivatisation was to sell shares through the stock market.
The sale talks come as Germany prepares for early elections next month. While the new government’s plans for the holding company are still unclear, it will still be subject to EU rules requiring it to reduce its stake in Uniper to a maximum of 25% plus one share by 2028.
Uniper is currently valued at 18.4 billion euros ($18.8 billion). However, any stake sale could be at a discount, as the group’s small free float may not properly reflect its actual value.
The deal would also require parliament to first pass a law that would allow Uniper to resume dividend payments. The company lost this right as part of a €13.5bn financial bailout to Berlin.
The current government is expected to try to lift the dividend ban before the election, which is seen as an ambitious deadline. However, sources said any deal was now more likely after the European summer.
Discussions are at an early stage, with no certainty as to what a deal would look like or when it would take place. While a complete sale would immediately generate large proceeds, it would preclude Berlin from benefiting from any future increase in Uniper’s share price, the sources added.
