Germany’s Uniper Stake Draws Interest From UAE’s Taqa, Sources Say #NewsGerman

(Bloomberg) — The German government’s stake in power company Uniper SE is attracting early interest from companies including Abu Dhabi’s Taqa, according to people familiar with the matter.

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Taqa is among potential suitors evaluating Uniper as Germany looks at ways to exit its holding, the people said, asking not to be identified because the information is private. Any transaction could value Uniper at €10 billion ($10.3 billion) or more, the people said.

Norway’s Equinor ASA has also been studying whether it may want to pursue a deal, the people said. Uniper’s management board is being advised by Goldman Sachs Group Inc., the people said.

The German government has been working with advisers as it explores a potential selldown of its stake in the utility, Bloomberg News has reported. It’s been considering whether it can sell the holding to a single buyer, alongside the possibility of paring its stake through a stock offering or so-called “re-IPO,” according to the people.

UBS Group AG and Roland Berger have been advising the German government on options to cut its Uniper stake, while Citigroup Inc., Deutsche Bank AG and UBS have been lined up to arrange the share sale if that path is pursued, Bloomberg News has reported.

Germany bailed out Uniper, the country’s biggest buyer of Russian gas, in the wake of Russia’s invasion of Ukraine in 2022. While the state owns over 99% of the company, the remaining fraction still trades on the Frankfurt stock exchange, where the firm has a market value of nearly €18 billion. Any deal is expected to come at a discount given the lack of liquidity.

Other suitors could also enter the fray, and the potential bidders could decide against making offers, the people said. Some interested parties may end up partnering 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 UK, as well as hydroelectric and nuclear power plants in Sweden.

The European Commission required Germany to reduce its stake in Uniper to not more than 25% plus one share by the end of 2028 when it approved the bailout. A spokesperson for the German finance ministry said the federal government is currently examining options for meeting that obligation, though no final decision has been made on the timing and form of a transaction. A capital markets sale is the main option being considered, though the government is also examining off-market options, the spokesperson said.

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