The Czech energy group EPH has emerged as a potential buyer for Germany’s stake in Uniper.
The German government has approached Czech energy company EPH, identifying it as a potential buyer for its stake in Uniper.
That’s according to a Reuters report, based on accounts from three sources familiar with the matter.
A potential acquisition would be another feather in Daniel Křetínský’s cap, as the owner of EPH expands his reach in Europe.
The Czech energy group already owns major stakes across several industries, holding interests in firms such as Thyssenkrupp, Sainsbury’s, Casino and International Distributions Services – parent firm of Royal Mail.
EPH has also signed historical deals with Uniper, purchasing its French power generation and distribution assets in 2019.
Near collapse to recovery
The German government is looking to reduce its holdings in Uniper after it bailed out the utility company in 2022.
Following the invasion of Ukraine, Uniper was on the verge of collapse when Russia’s Gazprom reduced and later stopped deliveries – forcing Berlin to step in.
The state currently owns a 99.12% stake in the Düsseldorf-based energy firm, while the remaining portion trades on the Frankfurt stock exchange.
Uniper is currently valued at around €19bn, although a sale is likely to come at a discount because of a lack of liquidity.
It’s also believed that the small portion of publicly-traded stock may not accurately reflect the firm’s value.
According to Reuters’ sources, Berlin may choose to fully or partially sell its holding in Uniper.
The European Commission, however, requires the government to reduce its stake to no more than 25% plus one share by the end of 2028. Those conditions formed the base of the bailout agreement.
Other buyers are in the picture
Germany’s finance ministry has claimed that it is examining options to meet the Commission’s requirements.
According to officials, a public market sale is the main option being considered, although off-market options are still on the table.
Last week, Bloomberg named companies expressing interest in the purchase – specifically Abu Dhabi’s Taqa and Norway’s Equinor.
Any transaction could value Uniper at €10bn or more, according to the report.
In the long term, it’s also believed that a sale could result in the division of Uniper’s assets – which include power plants in Germany, Netherlands, the UK, and Sweden.
Discussions around Uniper’s future are taking place against a tumultuous political backdrop in Germany.
The country is preparing for a snap election after the collapse of the coalition government late last year, meaning state decisions remain shrouded in uncertainty.
In November last year, Uniper adjusted its financial expectations for 2024, raising its predictions for adjusted net income to a range between €1.5bn and €1.8bn.
Uniper has yet to respond to Euronews’ request for comment.
The German finance ministry said that it would not comment on speculations, although reiterated that it was committed to meeting obligations set by the European Commission to reduce its stake.
EPH declined to comment.
