Germany to begin privatisation of seized Gazprom division
Head of company now known as Sefe says capital increase could raise up to €2bn
The German division of Gazprom seized by Berlin in the wake of Russia’s 2022 assault on Ukraine is poised to take its first step towards privatisation, its chief executive has said.
The company, now known as Sefe, intends to raise €1.5bn-€2bn through a capital increase, Egbert Laege told the FT, and will use the funds to expand the side of the business that runs infrastructure assets.
Sefe, short for Securing Energy for Europe and formerly called Gazprom Germania, includes assets such as gas storage and pipelines as well as a UK-based trading business previously known as Gazprom Marketing & Trading.
This will be the first dilution of the German government’s 100 per cent shareholding in the company. According to EU Commission rules, it must sell off at least 75 per cent of its stake by the end of 2028.
Laege said the Iran war had given added impetus to the group’s privatisation plans, as restricted flows from the Middle East highlighted the importance of reliable suppliers. It has also driven gas prices higher.
The company’s history as a vehicle for Germany to manage its energy security could exclude some investor candidates.
“We are discussing with the government on whether it has preferences or restrictions, given that we are at a very crucial point for the security of supply for Europe and Germany,” said Laege.
Once it has completed its initial capital increase, the government will dilute more of its shares in another process that could take the form of another sell-off, an initial public offering or something else, according to Laege.
“Given the short time in which we’re operating, maybe the IPO is a bit difficult for us but in the end this is up to the markets and it’s a decision for the government,” he said.
Some industry observers have speculated that the company’s assets might be split and sold off. However, Sefe intends to keep the two “engines” of the business — its regulated assets and trading operations — together as they complement one another, according to Laege.
Others have suggested Germany may merge Sefe with gas importer Uniper, which was also nationalised in 2022 when it almost collapsed after Russia cut its exports of the fuel to Europe.
“The government has been looking at this,” Laege said. “It owns both companies so it should of course look at whether a combination would create more value, but currently I’m working under the assumption that the process for Sefe will be standalone.”