German Government Agrees On Bailout For Energy Supplier

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The German government has agreed on a bailout for Uniper UN01, -8.24%, which reduced Russian gas imports have hit, the company said.

Terms call for the German state to take a 30% stake for 267 million euros, provided further capital of up to 7.7 billion euros against the issuance of mandatory convertible instruments.

Furthermore, the state-owned KfW bank is to boost its existing credit facility to 9 billion euros from 2 billion euros.

The German government intends to introduce a cost absorption mechanism that covers 90% of the losses resulting from higher costs for gas replacement volumes caused by Russian gas curtailments from Oct. 1.

Fortum’s FORTUM, 2.54% stake in Uniper will be diluted to 56% from 80%.

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