Author: PPD Team Date: 16/01/2025
The German government’s 99% stake in power company Uniper has attracted interest from potential buyers, including Abu Dhabi’s Taqa and Norway’s Equinor, according to Bloomberg News. Germany is looking to reduce its holding, with Uniper’s value expected to exceed €10bn ($10.3bn).
The government is considering options to exit, either through a single buyer or a stock offering. Goldman Sachs Group is advising Uniper’s management, while UBS Group and Roland Berger are exploring strategies for reducing the stake. Citigroup, Deutsche Bank, and UBS may handle the share sale.
After bailing out Uniper in 2022 due to the impact of Russia’s invasion of Ukraine, Germany must reduce its stake to no more than 25% plus one share by 2028 under European Commission rules. Despite a market value of almost €18bn on the Frankfurt stock exchange, any transaction is likely to occur at a discount due to limited liquidity.
Uniper’s assets include gas, coal, hydroelectric, and nuclear plants across Europe, and interested buyers may consider purchasing or partnering to divide them. The German finance ministry confirmed that options are being explored but has not finalised the timing or transaction format.
Taqa is seeking international expansion as part of the UAE’s diversification efforts, while Equinor aims to boost renewable power investments and oil and gas production in Europe.