Uniper Shares Plunge After Germany Agrees to Nationalization Deal
September 21 2022 - 4:19AM
Dow Jones News
By Giulia Petroni
Uniper SE's shares plunged on Wednesday after the German
government agreed to nationalize the troubled gas importer to
secure energy supply in the country.
At 0733 GMT, shares trade 19% lower at EUR3.38.
The rescue deal includes a capital increase of 8 billion euros
($8 billion) and the acquisition of parent company Fortum Oyj's
shares in the utility by the state. Upon completion, Germany will
own approximately 98.5% of Uniper.
In July, the government pledged to take a 30% stake in the
utility and extended credit lines as part of a bailout package, but
since then Uniper's financial situation has worsened due to higher
gas procurement costs and Russia halting gas flows via the Nord
Stream pipeline.
"The European energy crisis has escalated further and the
severity of the situation has made it apparent that the previously
agreed stabilisation measures are insufficient and difficult to
implement," Fortum said.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
September 21, 2022 04:04 ET (08:04 GMT)
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