Status: 11/14/2022 3:29 p.m
The federal government is nationalizing the gas company Securing Energy for Europe (SEFE). The Economics Ministry justifies this with an impending insolvency of the former Gazprom subsidiary. That would endanger the security of supply in Germany.
After Uniper, the federal government is also nationalizing the gas importer Securing Energy for Europe (SEFE), formerly Gazprom Germania. The Federal Ministry of Economics announced that the federal government would finally force Russia out of the company and would take over 100 percent of the shares itself.
Since the spring, the company has “been in serious financial difficulties due to Russia’s actions, in particular due to Russian sanctions (…). “The reason for this is SEFE’s overindebtedness in the commercial balance sheet and the resulting threat of insolvency, which would jeopardize the security of supply in Germany,” the ministry justified the step, which was last expected. “In order to avert this danger and to maintain SEFE’s operational business, the change of ownership is now being completed and the company stabilized.” A corresponding order was published in the Federal Gazette at the beginning of the week.
Managed in trust since April
SEFE has been held in trust by the Federal Network Agency since April after the state-controlled Russian parent company Gazprom announced the sale, but the new ownership structure remained unclear. The company, which was renamed SEFE after the start of the trusteeship, is active in the areas of energy trading, gas transport and the operation of gas storage facilities, among other things. It is “a key company for the energy supply in Germany”, emphasized the Federal Ministry of Economics.
In the course of nationalization, government loans worth billions are to be converted into equity. In addition, there is almost 226 million euros in fresh money. The company had already received loans from the state development bank KfW in the amount of 11.8 billion euros. These would now be further increased to 13.8 billion euros, the ministry said.
“Significant parts” of the total converted to equity
By the end of the year, “substantial parts” of this sum would be converted into SEFE equity. The future sole shareholder of the company, the newly founded and state-owned Securing Energy for Europe Holding GmbH (SEEHG), will also contribute EUR 225.595 million as fresh share capital to the company.
With the ordered capital cut, the previous shareholder of the company loses his position as a shareholder. The capital cut is associated with compensation based on the market value of the shares. “The compensation process has not yet been completed,” the ministry said.