Berlin The federal government has almost finalized the cornerstones for the rescue of the gas supplier Uniper. According to this, the federal government wants to take a 30 percent stake in Uniper, and it also wants to make seven to eight billion euros available in equity-like funds. People familiar with the negotiations told the Handelsblatt.
Around noon, the basics of the rescue package are to be presented, the Handelsblatt learned from government and financial circles. Before that, there will be a final vote at the highest level of government with Chancellor Olaf Scholz. “One is already strong in the details of the design,” it said.
The price at which the federal government will subscribe to the Uniper shares has not yet been finally determined – but a nominal value of EUR 1.70 per share is considered likely. The capital increase could bring in around 200 million. If all of the federal aid were to flow in the form of new shares, the stake held by the previous main shareholder Fortum would be severely diluted, and the Finnish group would only have a stake of a few percent.
Uniper rescue: KfW bank should increase loans from gas suppliers
Which instrument of equity-like funds, known as hybrid capital in technical jargon, will be used is only to be clarified in the next few weeks. It is considered likely that the federal government will subscribe to mandatory convertible bonds. These are fixed-income securities that automatically convert into shares at the end of the term and are therefore regarded by rating agencies as an instrument similar to equity.
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The state-owned Kreditanstalt für Wiederaufbau (KfW) is also to increase credit lines for Germany’s largest gas trader, possibly to eight billion euros. However, only for a short time. Some of the loans are to be repaid as soon as the federal government subscribes to its mandatory convertible bonds and Uniper has the corresponding capital available. The federal government is also to receive seats on the supervisory board.
Probably an important rating decision on Uniper on Friday
The concrete design of the Uniper rescue should also send a signal to the rating agencies. On Friday, the important agency S&P apparently wants to discuss a possible reclassification of Uniper.
S&P recently announced a downgrade for the gas supplier. That would make it more difficult for the company to get fresh money from investors, and Uniper would then have to offer higher security for gas transactions.
A split of the company, as originally proposed by Uniper majority shareholder Fortum, is said to be off the table.
Federal Economics Minister Robert Habeck (Greens) also promised rapid support for Germany’s largest gas importer. It is correct that Uniper used stocks in its gas storage facilities to stabilize itself, Habeck said on Thursday. But that will no longer be necessary: ”We will soon stabilize Uniper differently.”
Uniper: Federal government could enable price transmission for gas
Uniper plays a central role in Germany’s energy supply and supplies more than a hundred municipal utilities and industrial companies with gas. It obtains this largely from Russia. However, Russia had continued to throttle gas supplies in recent months. Uniper therefore has to procure expensive gas from other sources in order to be able to fulfill the contracts with its customers.
Uniper’s future will therefore be decided primarily on whether and how the company will be able to pass on the additional costs of buying gas to its customers. “No matter how much the federal government can get involved, that doesn’t solve the basic problem,” says a government representative.
The federal government wants to counter this situation by enabling Uniper to pass on the high procurement costs. According to government circles, the price will also be passed on very soon in order to be able to press ahead with the rescue of Uniper.
More: Habeck wants to prevent the gas crisis with a package of measures