Fortum, a Finnish state-owned utility, has closed the first tranche of its agreement to purchase a majority stake in German energy company Uniper. The shares are held by Elliott Management Corp. and its affiliates together with Knight Vinke Energy Advisors and its affiliates.
Fortum first announced its plans to increase its ownership of Uniper by more than 20.5 percent in October 2019.
Fortum said it now holds 69.6 percent of the shares and voting rights in Uniper. Fortum is paying €2.6 billion ($2.8 billion) for the combined shareholding, increasing its total investment in the company to €6.5 billion ($7.2 billion). The transaction was financed with existing cash resources and committed credit facilities underwritten by Barclays Bank.
Following the closing of the first tranche, Fortum plans to consolidate Uniper as a subsidiary and treat the company as a separate reporting segment. U
