Germany's SEFE seeks 2 billion euro capital increase to start privatization

SEFE has proposed a capital increase of up to 2 billion euros, or $2.35 billion, to open the privatization process that would force Germany to reduce its stake to a blocking minority by the end of 2028. The state-linked energy company said it had already discussed the plan with the German Economy Ministry, and if approved, the increase could be carried out over the next nine to 12 months.

The move marks the next stage in SEFE’s shift from emergency rescue to sale candidate. The company began life as Gazprom Germania GmbH, was placed under trusteeship by Germany’s Bundesnetzagentur on April 4, 2022, and then became fully state-owned after Brussels approved a 225.6 million-euro aid measure on November 12, 2022. A further 6.3 billion-euro recapitalisation won European Commission approval on December 20, 2022, cementing Berlin’s takeover after Russia’s invasion of Ukraine jolted European energy markets.

That history still hangs over the company. SEFE is not a small utility waiting to be carved up, but a major part of Germany’s gas infrastructure, operating thousands of kilometers of pipeline as both a network operator and an energy trader. Its gas network subsidiaries run grids with a combined length of around 4,200 kilometers and account for about 20% of Germany’s planned hydrogen core network, which makes any change in ownership relevant not just to finance but to the country’s energy transition.

For investors, the appeal will depend on three questions: how strong SEFE’s balance sheet really is, how much political baggage comes with a business nationalized in a crisis, and how Berlin intends to balance privatization with supply security. The Economy Ministry has said it is still exploring several options and has made no final decision, leaving the pace and structure of the exit open.

SEFE has also moved to strengthen its own financing ahead of any sale. On April 15, 2026, it said it secured a five-year 2 billion-euro revolving credit facility and fully cancelled the remaining 2.5 billion-euro KfW liquidity support facility. Both transactions were completed on April 2, 2026, which SEFE described as a milestone of full financial independence and a key step on the path to privatization.