German energy firm SEFE enlists Lazard in reprivatisation efforts

SEFE Taps Lazard to Guide Reprivatisation as Germany Plots Stake Sale by 2027

SEFE’s Path to Reprivatisation and Germany’s Energy Strategy

Background: SEFE’s Bailout and Strategic Importance

FRANKFURT, Oct 2 (Reuters) - German state-owned SEFE is working with investment bank Lazard to explore options in Berlin's efforts to sell the energy group, two people familiar with the matter said, as efforts to reshuffle the country's energy landscape pick up.

SEFE, short for Securing Energy for Europe, had to be bailed out by Berlin for €6.3 billion ($7.1 billion) in 2022 after former parent Gazprom abandoned the business, which is key for Germany's security of supply.

Timeline for Stake Sale

A sales process for SEFE is expected to kick off in 2027 to avoid clashing with Berlin's current efforts to sell a majority stake in peer Uniper, which also had to be rescued in the wake of Europe's energy crisis, the people said.

An initial public offering is currently seen as unlikely, one of the sources said.

SEFE’s Operations and Financial Performance

Business Activities and Market Reach

SEFE, which employs more than 2,000 staff, operates a range of activities, including 4,200 kilometres (2,600 miles) of gas pipelines, a quarter of Germany's gas storage capacity and a large commodity trading desk.

The company, which has already paid back close to €1 billion in state aid, supplies more than 200 terawatt hours of gas and power to more than 50,000 industrial customers, including municipalities and companies.

Financial Results and Capital Plans

SEFE, which made core profit of €789 million on sales of €15.5 billion last year, said in April it had proposed a capital increase of up to €2 billion to Germany's Economy Ministry, which oversees ownership of the company.

Stakeholder Responses and Regulatory Context

Comments from SEFE and Lazard

SEFE and Lazard declined to comment.

EU State Aid Rules and Ownership Requirements

Under European Union state aid rules, Germany must cut its ownership in both SEFE and Uniper to no more than 25% plus one share by the end of 2028.

Industry Reporting and Additional Information

Boersen-Zeitung first reported the appointment of Lazard.

($1 = €0.8890)

(Reporting by Christoph Steitz and Ludwig Burger, editing by Friederike Heine and Thomas Seythal)