Germany in talks to increase its stake in Uniper

© Reuters.

By Scott Kanowski — German Government Eyes Potential Increase in Stake in Struggling Energy Company Uniper SE (ETR:), as the company struggles to remain solvent following a cut in key Russian gas supplies.

In a statement on Wednesday, Uniper said its major shareholders, including Berlin, and its Finnish counterpart fortune (HE:), are considering a direct equity raise that would give Germany a “significant majority stake” in the company.

Shares of Uniper, which has already received nearly 20 billion euros in government support, fell sharply after the announcement.

Uniper added that its financial losses since July had increased significantly due to rising energy supply costs following Russia’s shutdown of gas supplies through the key Nord Stream 1 pipeline. Uniper – which was the biggest importer of Russian gas before the outbreak of war in Ukraine – is said to be close to insolvency.

“Uniper’s deteriorating operating environment and financial situation must be taken into account as Fortum, the German government and Uniper continue their discussions on a long-term solution for Uniper,” the company said.

He added that no decision had been taken beyond what had been agreed in an earlier stabilization package unveiled in July.

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