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Finnish Government Says Fortum's Uniper Sale Limits Losses

By Dominic Chopping

 

Finland's Minister of European Affairs and Ownership Steering Tytti Tuppurainen said Wednesday that Fortum Oyj's deal to sell its stake in Uniper SE to the German state allows the Finnish company to limit the risk of losses while guaranteeing security of energy supply in Germany.

Fortum on Wednesday agreed to sell its stake in Uniper to the German state for around 500 million euros ($498.5 million) while the EUR4 billion shareholder loan it provided will be repaid by the German government. Fortum will also be released from a EUR4 billion guarantee that it provided to the company.

Fortum is majority-owned by the Finnish state and Ms. Tuppurainen said the company must protect its financial position in a way that preserves the company's ability to perform its core business.

"The goal of the state owner has been for Fortum to ensure the repayment of the EUR4 billion shareholder loan and the release of the EUR4 billion parent company guarantee, and due to the negotiated solution the company's owners will not have to recapitalize Fortum due to the Uniper crisis," she said.

Fortum held around 80% in Uniper at the time of a previous bailout of Uniper in July, which diluted Fortum's stake to 56%.

 

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

 

(END) Dow Jones Newswires

September 21, 2022 03:48 ET (07:48 GMT)

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