Apollo Bids for Germany's Uniper in €10B State Stake Sale

Apollo Global Management has entered the auction for German state-owned energy firm Uniper by submitting a non-binding offer, joining a crowded field of high-profile suitors.

Apollo Global Management has submitted an indicative bid for the energy company, according to two people with direct knowledge of the matter. The move brings another major private equity player into a competitive sale process managed by Berlin.

Uniper's 2022 Bailout and Current Ownership

The German government took control of Uniper in 2022 under a €13.5 billion ($15.1 billion) bailout following the cutoff of Russian natural gas supplies. Berlin currently holds a 99.12% stake in the utility, overseen by the German finance ministry.

The state's heavy intervention prevented a systemic collapse of Germany's gas supply infrastructure during the European energy crisis. Under terms agreed upon with European Union regulators, Germany is required to reduce its ownership stake significantly over the coming years.

EU Mandates and the €10 Billion Valuation

The German finance ministry is looking to sell up to 74.12% of Uniper to meet EU requirements. The divestment aims to cut the state's holdings down to a blocking minority by 2028.

Market estimates place the potential transaction value at around €10 billion based on current valuations. The exact financial terms will depend on the final structure of the sale and prevailing energy market conditions.

Competing Bidders and Dual-Track Process

Apollo joins a packed field of international energy companies and investment funds vying for the asset. Other suitors that have submitted indicative bids include:

• Czech energy firm EPH
• A consortium of Brookfield and CPPIB
• Norway's Equinor
• A consortium consisting of KKR and RWE

Alongside the direct sale process to strategic or financial buyers, Uniper is being pursued via a dual-track process. German authorities are simultaneously exploring an initial public offering as an alternative pathway to reduce the state's massive equity burden.