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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