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The package will see the German Government acquiring a 30% staje in Uniper from Fortum by subscribing to approximately 157 million new ordinary registered shares, each valued at €1.70 per share.
This will reduce Fortum’s stake in Uniper from nearly 80% to 56%.
The government will also issue up to €7.7bn in further capital against the issuance of mandatory convertible instruments to address potential losses.
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Uniper will also receive an additional €7bn in liquidity support from German state-owned bank KfW, through an increase of its existing credit facility.
In a press statement, Uniper said: “The package of measures secures Uniper and provides a solution to the losses incurred by Uniper due to the prevailing gas supply shortage. The measures agreed are also intended to ensure that Uniper’s credit rating remains investment-grade.”
The German Government is also planning to introduce a cost absorption mechanism whereby Uniper can transfer additional costs of up to 90% for replacing missing gas supplies from Russia’s Gazprom, effective from 1 October 2022.
The government would cover the losses on gas sold in the country.
Uniper will also work with Fortum and the German Government on a long-term solution to restructure the wholesale gas contract architecture.
Fortum president and CEO Markus Rauramo said: “New geopolitical realities have shaken the European energy system to the core, and this determines a new framework for European energy companies.”
“Whilst we have now achieved immediate stabilisation of Uniper, further efforts will be required to create a long-term sustainable basis for the gas business. The agreed solution is a major step in ensuring that Uniper, and consequently also the Fortum Group, return to a stable footing.”
Bloomberg News recently reported that Germany was in talks with energy giant Shell, as well as other undisclosed liquefied natural gas (LNG) suppliers, for long-term supply contracts.