Germany plans to privatise former Gazprom unit SEFE

Germany is preparing to privatise its state-controlled energy company SEFE, formerly the German subsidiary of Russia's Gazprom, following its takeover after the outbreak of the war in Ukraine, Egbert Laege, Chief Executive, has stated.

In an interview with the Financial Times, he said the government is moving forward with plans to return the company to private ownership.

The company was nationalised in April 2022 and later rebranded as SEFE.

It manages major assets, including one of Germany’s largest gas storage facilities.

According to Laege, SEFE aims to raise between €1.5 billion and €2 billion through a capital increase.

He noted that plans for privatisation are being shaped by ongoing volatility in energy markets, including tensions in the Middle East, which have driven up gas prices in Europe and underscored the importance of reliable energy supplies.

He also mentioned that, given SEFE’s strategic role in Germany’s energy security, participation by some potential investors may be restricted.

Laege added that an initial public offering (IPO) remains a possibility, depending on market conditions and government decisions.

German authorities are also considering a potential merger between SEFE and another nationalised energy company, Uniper.

No final decisions have been made, and SEFE continues to operate independently.

By Bakhtiyar Abbasov