Uniper Labor Leaders Oppose Strategic Sale, Push for IPO Amid Privatization

Labor representatives for German utility Uniper are publicly opposing a sale to a strategic investor, arguing that an initial public offering (IPO) is the preferred path as the government advances its privatization plans. The works council fears a sale could lead to the dismemberment of the company, which was rescued by the state in 2022.

IPO Favored to Preserve Company

Uniper's works council, a powerful group that holds half the seats on the company's supervisory board, has voiced strong concerns that a strategic buyer would break up the utility, cut jobs, and close operational sites. "Only an initial public offering would preserve Uniper as a whole," Martin Geilhorn, head of the works council, told Reuters.

Geilhorn added that initial investor roadshows to gauge market appetite for Uniper shares have been positive. According to two people familiar with the matter, these preliminary meetings have gone well, suggesting investor interest in a potential public listing.

Strategic Bidders Emerge

A sale to a strategic investor would be "unacceptable," Geilhorn stated, specifically naming Czech energy group EPH as an example. EPH, owned by billionaire Daniel Kretinsky, is reportedly among the parties that submitted an indicative bid by the September 21 deadline, according to sources familiar with the process.

Ad

Other potential bidders include Canadian investors CPPIB and Brookfield, who are said to have submitted a joint indicative offer. The sources noted that a deal could value Uniper at approximately €10 billion, positioning it as one of Europe's most significant utility transactions this year. EPH, CPPIB, and Brookfield all declined to comment on the matter.

Context of the Divestment

The German government is pursuing a dual-track process for the divestment, keeping both a direct sale and an IPO as possible outcomes. Berlin acquired a 99.12% stake in Uniper following a €13.5 billion ($15.4 billion) bailout during the 2022 European energy crisis.

The government has announced plans to sell down its holding, intending to retain a 25% plus-one-share blocking stake in the systemically important utility. The current process marks a critical step in returning the major energy provider to private ownership.