Germany Nationalizes Gas Giant Uniper

German energy major Uniper SE (UNPRF.PK), said on Wednesday that the German Government has acquired its shares held by Fortum Oyj, a Finnish energy company, for 1.70 euros per share, to own around 99 percent stake in the company.

Post acquisition, the credit line provided by Fortum, which includes a 4 billion euros shareholder loan, and 4 billion euros guarantee line, will be replaced by the Government.

In addition, a capital increase of 8 billion euros at an issue price of 1.70 euros per share has been planned. The shares issued as part of the capital increase will be subscribed by the Federal Government.

The state-owned lender KfW has agreed to pump necessary financing to Uniper based on its liquidity needs.

The moves, jointly decided by the Federal Government, Uniper, and Fortum have allowed an amendment to the package announced on July 22, to ensure the long-term stabilization of Uniper in the wake of persisting crisis in the global energy market.

Klaus-Dieter Maubach, CEO of Uniper, said: "Today's agreement provides clarity on the ownership structure… This secures the energy supply for companies, municipal utilities, and consumers. The amendment of the stabilization package announced in July was necessary against the backdrop of the further intensification of the energy crisis."

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