By Christoph Steitz
Frankfurt, July 3 (Reuters) - Berlin Will Have to Accept a Significant Discount in a Planned Sale of Shares in Bailed-Out Uniper UN0K.de, Two People Familiar With the Matter Said, Adding That the Group's Current Market Valuation Was No Reliable Indicator.
A Sale of Government Holdings in the Utility Could Become One of Germany's Biggest Deals Next Year and Rake in Badly Needed Funds for the Country's Three-Way Coalition.
Following Years of Heavy Spending in Response to the Covid and Energy Crises, Germany's Budget Suffered a Further Setback Last Year When the Country's Constitutional Court Blocked the Re-Purposing of Funds, Causing Frictions Within the Coalition.
Berlin Is Preparing the Sale of Around 20-30% in Uniper, Likely in Spring 2025, to Pare Back Its Holding Acquired as Part of the Company's Nationalisation in the Wake of Europe's Energy Crisis, the People Said.
Uniper and the Finance Ministry, Which Oversees the German Government's Stake in Uniper, Both Declined to Comment.
Uniper's Current Share Price of Around 45 Euros Values the Government's 99.12% Stake at 18.5 Billion Euros ($19.9 Billion), but That Valuation Is Inflated by Its Tiny Free Float of 0.88%, Which Means the Group's Stock Is Barely Traded, the Sources Said.
An Additional Reason for the Inflated Share Price Could Be Minority Shareholders Who Held Out for a Squeeze-Out When the Government Stepped in Around Two Years Ago, They Said, Adding Citi C.n Had Been Hired as Part of the Sales Process.
To Successfully Place a Minority Stake With Investors, the Government May Have to Value Uniper at 10 Billion Euros or Less, One of the People Said, Which Would Represent a 46% Discount to Current Levels.
In Total, the German Government Pumped 13.5 Billion Euros Into Uniper to Save What Was Then Germany's Biggest Importer of Russian Gas From Collapse, Making It One of the Country's Biggest Ever Bailouts.
Berlin May Be Willing to Accept a Steep Discount in a First Sale, Hoping to Fetch Higher Prices in Subsequent Stake Disposals and Also Relying on Uniper Restarting Dividend Payements at Some Stage, the Sources Said.
Under European Union Rules, the German Government Must Reduce Its Holding in Uniper to at Least 25% by the End of 2028.
Uniper Shares Are Already Down More Than a Quarter so Far This Year, in What Sources Said Reflects Anticipation of the Share Sale and Subsequent Value Adjustments.
Uniper Chief Executive Michael Lewis, Too, in February Acknowledged That Not Enough Uniper Shares Were Traded and the Government Had to Sell More to Arrive at a Clearer Valuation.
Details on the Planned Stake Sale and the Timing Are Not Final and Still Subject to Change, the People Said. Bringing in a New Anchor Shareholder Remained an Option IF Markets for Listings Continue to Be Subdued, the Said.
($1 = 0.9294 Euros)
(Reporting by Christoph Steitz
Editing by Tomasz Janowski)
((Christoph.steitz@Thomsonreuters.com; +49 30 220 133 647))