The German Chancellor, Olaf Scholz, has announced a rescue package for the company german gas Uniper, subsidiary of the Finnish Fortum and with liquidity problems due to the reduction of Russian gas supplies.
The German State will assume 30% of the companyaccording to the agreement reached, which was reported by Scholz at a press conference announced at the last minute and after the chancellor’s return to Berlin, who thus interrupted his vacation.
The chancellor also announced, among other stabilization measures, that the line of credit that Uniper has in the German Development Bank (KfW) will be extended from 2,000 to 9,000 million euros.
The instrument of the contingent convertible bonds -which at the end of their duration period are automatically converted into shares-, which means, as he said, an injection of “hybrid capital” for the company worth 7,700 million euros.
The negotiations on the rescue between the German Government, Forum and the Finnish Executive lasted for several weeks and according to the German media, Berlin was lobbying for additional support from Helsinki.
As the chancellor explained, the German State will buy Uniper shares at a nominal value of 1.70 euros, despite the fact that they are listed on the stock market at more than ten euros, and stressed that with this Fortum is also making a “contribution”.
All these measures will help “stabilize” the companywhich according to Scholz is of “crucial” importance for the supply of gas to citizens and businesses in Germany.
The chancellor recalled that the financial difficulties of the company, the main foreign client of the Russian Gazprom, have their origin in the cut of the supply of gas on the part of Moscow.
That cutback has forced Uniper to buy from other suppliers at much lower prices. higher to be able to fulfill their contracts with their clients, a those who cannot transfer the new costs, which has caused “great difficulties”.
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Scholz stressed that it will deal “together” with the problems arising from the energy crisis and that no citizen or company will be forced to face the difficulties on their own.
“We are strong enough to get it” he assured, before emphasizing that his government “will do whatever is necessary” to achieve that purpose.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.