The German government’s stake in energy company Uniper SE is attracting early interest from companies including an Abu Dhabi-based energy company, according to people familiar with the matter.
Article content
(Bloomberg) — The German government’s stake in energy company Uniper SE is attracting early interest from companies including an Abu Dhabi-based energy company, according to people familiar with the matter.
Article content
Article content
The sources, who requested anonymity because the information is private, said that TAQA is among the potential bidders evaluating Uniper as Germany looks for ways to exit its holdings. Any deal could value Uniper at 10 billion euros ($10.3 billion) or more, the sources said.
Advertisement 2
This ad has not loaded yet, but your article continues below.
Article content
Norway’s Equinor ASA is also considering whether it might want to pursue the deal, the people said. Uniper’s board is being advised by Goldman Sachs Group Inc., the people said.
The German government is working with advisers as it explores the possibility of selling its stake in the company, Bloomberg News reported. It has been considering whether it could sell the property to a single buyer, along with the possibility of reducing its stake through a stock offering or a so-called “re-IPO,” the people said.
UBS Group AG and Roland Berger are advising the German government on options to reduce its stake in Uniper, while Citigroup Inc. has lined up a deal, Bloomberg News reported. and Deutsche Bank AG and UBS to arrange a share sale if that route is followed.
Germany has bailed out Uniper, the country’s largest buyer of Russian gas, following the Russian invasion of Ukraine in 2022. While the country owns more than 99% of the company, the remaining portion is still traded on the Frankfurt Stock Exchange, where the company has a market value of approximately 18. One billion euros. It is expected that any deal will come at a discount due to the lack of liquidity.
Article content
Advertisement 3
This ad has not loaded yet, but your article continues below.
Article content
Other bidders could also participate in the fray, and potential bidders could decide not to submit bids, the sources said. Some interested parties may end up getting into a partnership down the track with the idea of splitting up Uniper’s assets, which include gas and coal-fired power plants in Germany, the Netherlands and the United Kingdom, as well as hydroelectric and nuclear power plants in Sweden.
The European Commission asked Germany to reduce its stake in Uniper to no more than 25% plus one share by the end of 2028 when it approved the bailout. A German Finance Ministry spokesman said the federal government is currently considering options to fulfill this commitment, although no final decision has been made on the timing and form of the deal. The spokesman said a sale on the capital markets was the main option being considered, although the government was also considering off-market options.
Reuters reported on Monday that the German government was considering the full sale of its stake, citing unidentified sources. Representatives for Equinor, Goldman and Uniper declined to comment, while a TAQA spokesperson did not immediately comment.
Advertisement 4
This ad has not loaded yet, but your article continues below.
Article content
State-controlled Taqa, officially known as Abu Dhabi National Energy Company, is eyeing deals abroad as the UAE seeks to diversify its investment portfolio. Equinor, which has a market value of about $72 billion, is actively seeking to expand its investments in renewable energy.
In October, the Stavanger, Norway-based company took a $2.5 billion stake in Danish wind energy giant Orsted A/S. Equinor is also increasing its oil and gas production in the North Sea as Europe tries to replace Russian supplies.
-With assistance from Anthony Di Paola, Eva Brendel, Camille Kowalci, and Petra Sorge.
Article content