Apollo submits non-binding bid for German energy firm Uniper, sources say

Apollo Global Management APO-A-N has submitted a non-binding offer for German state-owned energy firm Uniper, two people with direct knowledge of the matter said, joining the auction for one of Germany’s largest utilities.

Potential suitors had until Sept. 21 to submit indicative bids for Uniper, which was taken over by the German government in 2022 under a €13.5-billion (US$15.1-billion) bailout.

In total, Berlin has received around €3.5-billion from Uniper since the bailout, including state aid paybacks and dividends.

A planned sale of Uniper, Germany’s leading importer of natural gas, could value the firm at around €10-billion and become one of Europe’s biggest utility deals this year, Reuters previously reported.

Apollo and Uniper declined Reuters’ requests for comment.

Apollo joins a crowded field of suitors

Energy supply has become an issue of geopolitical and strategic importance for nations around the world, a fact underscored by Iran war disruptions and recent attempts to sabotage power grids. Due to its importance to Germany’s security of supply, the question of Uniper’s future ownership has drawn close scrutiny.

Germany’s finance ministry, which oversees Berlin’s 99.12-per-cent stake in the company and is being advised by UBS and JPMorgan, is looking to sell up to 74.12 per cent of the energy firm to meet EU requirements to cut its stake to a blocking minority by 2028.

Czech energy firm EPH, which is controlled by billionaire Daniel Kretinsky, as well as a consortium of investment firm Brookfield and Canada Pension Plan Investment Board have submitted indicative bids, Reuters previously reported.

Norway’s Equinor and a consortium consisting of KKR with rival German utility RWE have also submitted bids, one of the two people said.

KKR, RWE and Equinor all declined to comment.

Suitors are expected to be informed about whether they can proceed to the next round in the coming weeks, a third person involved in the talks said.

The people spoke on condition of anonymity because they were not authorized to speak publicly.

Uniper is being sold in a dual track process, with an initial public offering also being explored by the government, a scenario favored by the company’s unions, who fear a possible breakup under new ownership.