Uniper calls for bailout from German government

Uniper, Germany's largest importer of Russian gas, stated that its board had applied for "stabilisation measures" and proposed that the government take a "relevant" equity stake in the firm after officials estimated earlier in the week that the company may need as much as €9.0bn - more than double its market value.

Chief executive Klaus-Dieter Maubach said the company, which downgraded its full-year financial outlook in June, was at risk of losing up to €10.0bn in its current trading year. Uniper also said it has received only 40% of contracted gas volumes from Russia and has had to source replacement volumes in the market at significantly higher prices.

Uniper, which is majority-owned by Finland's Fortum Oyj, also requested additional debt funding through an increase in a state-backed credit facility.

Fortum Oyj, which is part-owned by the Finnish government, has proposed "a restructuring of Uniper aiming at establishing a security of supply company under the ownership of the German government". It also said it had already "substantially" supported Uniper with an €8.0bn credit facility, which it added was "almost fully drawn".

Earlier in the week, German lawmakers approved a plan to inject capital into companies and passed legislation that would allow companies to pass the cost of surging gas prices onto consumers.

"Fortum is in constructive talks with the German government on how to stabilise Uniper both regarding its business risks and financial position," it said.

One proposal would see Uniper's business portfolio reorganised to safeguard its system-critical German businesses under the ownership of the government. However, it also noted that no decisions had been made as of yet.

Reporting by Iain Gilbert at Sharecast.com