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

Apollo Joins Auction for German Energy Giant Uniper with Non-Binding Bid

Overview of Apollo's Bid and the Uniper Auction

By Christoph Steitz and Anousha Sakoui

FRANKFURT/LONDON, Oct 7 (Reuters) - Apollo Global Management 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.

Background on Uniper and the German Government Bailout

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

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

Potential Valuation and Significance of the Sale

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

APOLLO JOINS A CROWDED FIELD OF SUITORS

Geopolitical Importance of Energy Supply

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.

German Government's Stake and Sale Strategy

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

Other Bidders and Consortiums

Czech energy firm EPH, which is controlled by billionaire Daniel Kretinsky, as well as a consortium of investment firm Brookfield and Canada's CPPIB 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.

Next Steps in the Auction Process

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 authorised to speak publicly.

Alternative Sale Options and Union Concerns

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

($1 = €0.8933)

(Reporting by Christoph Steitz and Anousha Sakoui, additional reporting by Nora Buli; Editing by Thomas Seythal and Joe Bavier)