Uniper Rescue Package to Include Additional EUR25 Billion for Future Losses
November 23 2022 - 5:56AM
Dow Jones News
By Giulia Petroni
Uniper SE said Wednesday that its stabilization package with the
German government and parent Fortum Oyj is being finalized and
includes additional capital of up to 25 billion euros ($25.7
billion) to cover future losses.
Germany's largest gas importer said the authorized capital is
set to be used to partially restore equity weakened by further
losses in 2022, 2023 and 2024, mainly associated with gas
replacement procurements as a result of Russian gas supply
restrictions.
The bailout deal still includes a cash capital increase of EUR8
billion at an issue price of EUR1.70 per share to be subscribed by
the German state, but this alone wasn't going to be sufficient to
stabilize the struggling utility.
Uniper said its board of management has submitted the main
elements of the rescue package to shareholders for approval at its
extraordinary general meeting on Dec. 19.
The package is still subject to regulatory approvals in various
jurisdictions, including final state aid and merger control
approvals of the European Commission, according to the company.
Consultations with the EU's executive branch are still
underway.
Regulatory approvals are expected before the EGM.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
November 23, 2022 06:41 ET (11:41 GMT)
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