UN01 Uniper SE

By Dominic Chopping

Finland's Minister of European Affairs and Ownership Steering, Tytti Tuppurainen, said Friday that the stabilization deal reached between Uniper SE and the German government is the best possible compromise under the current circumstances and schedule.

Uniper--a subsidiary of Finnish energy group Fortum Oyj--is Germany's largest importer of Russian gas and has been hit hard by Russia's reduced deliveries of gas as it has been forced to source replacement gas supplies in the market at significantly higher prices.

"The view of the Finnish government, as Fortum's largest owner, was that no additional financing from Fortum or the Finnish government should be granted as part of the solution, and that the 4 billion euro [$4.09 billion] shareholder loan granted by Fortum and the EUR4 billion parent company guarantees given on behalf of Uniper would remain in effect," Ms. Tuppurainen said.

"These goals were achieved," she added

The deal reached Friday sees the German state take a 30% equity stake in Uniper by subscribing to around 157 million new ordinary shares for EUR267 million.

The German government will also make further capital of up to EUR7.7 billion available while German state-owned KfW bank will provide an additional EUR7 billion in liquidity support by increasing an existing credit facility.

Fortum's current stake of around 80% in Uniper will be diluted to 56% on the initial equity injection.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 22, 2022 07:22 ET (11:22 GMT)

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