By Pierre Bertrand

Uniper said its shareholders have approved a capital reduction, paving the way for the German government to exit the company.

The German utility said the measures, addressed at a extraordinary general meeting Friday, were passed with a large majority.

The company said it intends to reduce its capital stock from about 14 billion euros ($15.11 billion) to about EUR416 million.

The reduction, in principle and subject to restrictions, will restore Uniper's ability to pay dividends, Chief Executive Officer Michael Lewis said in a statement.

"The payment of a dividend is an important decision criterion for investors to buy shares in a company--this holds for institutional and private investors alike. We have now created room for maneuver for the German government to exit the company," Lewis said, adding that how and when an exit would occur hasn't yet been decided.

The German government took over Uniper in 2022 as part of a stabilization package that included the injection of billions of euros when the utility was reeling from Russian gas curtailments resulting from the war in Ukraine.

As part of the European Commission agreement on the terms of the rescue, the German government would reduce its shareholding to a maximum of 25% plus one share by 2028, at the latest.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

December 08, 2023 13:00 ET (18:00 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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