The German federal government is initiating the privatization of the Dusseldorf-based energy group Uniper. In a formal notice published in the 'Financial Times' on Tuesday, the government stated its intention to retain only 25 percent plus one share of the gas utility at the end of the process. Following its nationalization during the 2022 energy crisis, the state currently holds a 99.12 percent stake. Both an Initial Public Offering (IPO) and a direct sale were cited as potential options. No final decision has yet been reached regarding the scale or timing of the divestment. Interested buyers are invited to submit expressions of interest to the coordinating investment banks, UBS and JP Morgan, by June 12.

'Uniper welcomes today's announcement by the Federal Ministry of Finance,' said Uniper CEO Michael Lewis. 'We are now more stable, resilient, and strategically focused. We have consistently aligned our business toward reliable earnings and maintain a strong balance sheet.' He added that this allows for the resumption of dividends as well as targeted investments. 'The form and timing of the re-privatization will be decided by the federal government.'

A spokesperson for the Finance Ministry noted that the government has been the majority shareholder since December 2022 and has committed to the European Commission to reduce its stake to a maximum of 25 percent plus one share by 2028 at the latest. The sale process has now officially been launched to gauge potential demand. 'In the sale process, the government will ensure that the future viability of the company as a whole, and thus Germany's security of supply, is preserved.'

Uniper's market capitalization currently stands at approximately 18 billion euros. Reuters reported in late April that the government could initiate the re-privatization shortly. However, a merger with Sefe, the formerly nationalized Gazprom subsidiary, has become less likely. Both companies were nationalized during the 2022 energy crisis for a combined total of nearly 20 billion euros. In late April, Federal Finance Minister Lars Klingbeil (SPD) had left open how the government intended to reduce its holdings in Uniper and Sefe.

(Reporting by Chris Steitz, Christian Krämer, and Ralf Bode; editing by Ralf Banser. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for corporate and markets).)