Gazprom's former subsidiary in Germany will be prepared for privatization

Gazprom's former structure in Germany, now known as Sefe, plans to increase its capital by €1.5-2 billion and start the privatization process, company head Egbert Lege told the Financial Times.

Sefe sees the capital increase as the first step towards reducing the government's stake. The company intends to use the raised €1.5-2 bln for infrastructure development. After the initial capital increase, the authorities may continue to sell the stake through an additional share sale offer, IPO or other mechanisms, Lege said.

He said geopolitical tensions, including the conflict in the Middle East, have increased market interest in reliable gas suppliers and supported prices, making the company's privatization more relevant.

Separating the company's assets or merging it with energy company Uniper, also nationalized in 2022, may be the next step, the Financial Times quoted unnamed analysts as saying. Lege confirmed that the German government is studying the merger, but for now Sefe is still considering privatization as a separate process.

Sefe (Securing Energy for Europe) was formerly known as Gazprom Germania and played a key role in ensuring Germany's energy security after a sharp cut in Russian gas supplies, Reuters notes. The company owns 10% of Germany's entire gas network and also has a trading unit in the UK.

Gazprom Germania was nationalized amid the energy crisis in 2022. European Union rules require Germany to reduce its stake to no more than 25% plus a share by 2028, Reuters recalls.

This article was AI-translated and verified by a human editor