May 27, 20232 min
German utility company Uniper, nationalised by the German government last year, is being urged to be privatised again "as soon as possible," according to CFO Jutta Doenges. Uniper's business model of procuring and reselling gas faced significant challenges when European gas prices skyrocketed due to Russia's invasion of Ukraine. As part of the government buyout approval from the EU, Uniper must reduce the government's stake to no more than 25% plus one share by the end of the year. Additionally, the company is required to sell off certain assets, including its international helium business. Uniper is actively working on finding suitable buyers for its other investments, including the helium business but main retain it if Uniper moves back into private ownership. Notably Uniper is the main offtaker from the recently commissioned Irkutsk helium plant in Russia.
Article:
German utility Uniper should be privatised again “as soon as possible” after being nationalised last year, CFO Jutta Doenges told the company’s annual general meeting on Wednesday.
“It is our goal to hand over Uniper to mostly private owners as soon as possible,” Doenges said, adding that this was one of the “guard rails” of the company’s current strategy review.
Uniper’s business model of procuring and reselling gas came under heavy pressure last year when European gas prices rose to record highs following Russia’s invasion of Ukraine.
The utility was nationalised by the German government later in the year, which prompted the EU to introduce certain conditions.
The EU asked the government to present a plan of how to reduce its stake in the company to no more than 25% plus one share by the end of the year, the CFO said. “We will make proposals for that in the coming months,” she added.
The EU’s approval of the government buyout is also contingent on Uniper selling off 10 properties or investments by the end of 2026, including its international helium business, an 84% holding in Russia’s Unipro and a hard coal-fired power plant in Datteln, Germany.
Uniper recently sold its 20% stake in Dutch company BBL to former partners Gasunie and Fluxys as part of these divestments.
Meanwhile, the company expected to conclude the sale of its UAE marine fuel business “in a timely manner”, Doenges said, adding: “We are working on finding the best possible owners for all other investments.”