The EU Commission approved a capital measure of EUR 6.3 billion, by which the KfW loan is partially converted into equity. The debt-to-equity swap covers replacement costs and ensures sufficient equity to conduct business as planned. Although the decision entails commitments for SEFE Group, among others on the sales business in Eastern Europe, these are not expected to have a significant impact SEFE’s core business. For the execution of the debt-to-equity swap, the German Federal Government will acquire KfW's receivables against SEFE under the loan and subsequently contribute them into SEFE’s capital reserve.
Earlier this year, SEFE was subject to an attempt to liquidate the company by SEFE’s former owner and targeted sanctions by Russia. The subsequent suspension of deliveries by Gazprom Export resulted in high replacement costs for SEFE to fulfil its contractual agreements with customers. After intense review, in November 2022, the German Federal Government took full ownership over SEFE after already having established a trusteeship for SEFE in April. Now that the legally required period of filing a lawsuit over the new ownership is officially over and the decision has not been legally challenged, the change of ownership has become final. The EU Commission has evaluated SEFE’s role in the market in-depth and announced their approval of a recapitalization of the state-owned SEFE.
The Managing Director of SEFE Dr. Egbert Laege comments on the EU Commission’s decision: “We are very pleased with the decision. We now have clarity on our future and the capital needed in order to shape it. We will continue to be a reliable partner for our suppliers, customers and trade partners in ensuring energy supply in Europe. Our teams have been working hard towards this day and I am very grateful for their tremendous efforts throughout the whole year.”
