Germany Nationalizes Biggest Gas Importer Uniper to Avert Collapse of Energy Sector
Germany nationalized Uniper, its largest utility company and importer of natural gas, on Sept. 21, in a move to keep its domestic energy industry afloat and to avert a collapse of the energy sector.
The government in Berlin had earlier bailed out its largest gas importer in July with a $14.95 billion rescue loan, in the middle of a worldwide energy crisis caused by the war in Ukraine.
The German government will now buy out the 56 percent stake already held by Finland’s Fortum for $501 million.
The deal will inject about $7.9 billion into the company via a capital boost at $1.68 a share, according to Uniper’s website.
Since the stabilization package for Uniper was agreed in July, Uniper’s situation has further deteriorated rapidly and significantly; as such, new measures to resolve the situation have been agreed,” announced Fortum in a statement.
The state-owned German bank KfW, which has already provided S12.84 billion in credit, will provide further financing to Uniper, according to its liquidity needs until the deal is sealed.
The total rescue package will cost the government around $29 billion, reported Bloomberg.
This will give the state control of 98.5 percent of the shares of the German utility company.
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Source: https://www.theepochtimes.com/germany-nationalizes-biggest-gas-importer-uniper-to-avert-collapse-of-energy-sector_4746920.html
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