Germany's Uniper sets new dividend policy ahead of possible IPO

By Christoph Steitz

FRANKFURT, Nov 6 (Reuters) - German state-owned energy group Uniper set a new dividend policy on Friday, in a move aimed at making it more attractive to investors in a possible initial public offering, which is being considered by Berlin as it seeks to sell down its stake.

Uniper, which was bailed out in 2022 for €13.5 billion ($15.1 billion) during Europe's energy crisis, said it would target annual dividend growth of 7% and proposed to pay €0.77 apiece for 2026, compared with €0.72 for last year.

The group's privatisation could value Uniper at up to €14 billion if net cash is factored in, people familiar with the matter have said, potentially making it one of Europe's biggest utility deals in recent years.

The payout policy gives possible investors transparency as Berlin pursues cutting its ownership in the company to a blocking minority, either via a sale to a strategic or financial investor or a partial listing on the stock exchange.

"With our strategy and planned investments, we are laying the foundation for the earnings growth we expect in the coming years," CEO Michael Lewis said.

"We want our shareholders to participate in this growth. Our dividend policy provides a clear, long-term outlook for this: We aim for a steadily growing dividend."

Uniper, which will hold a capital markets day on November 16 to provide investors with more details about its strategy, said the dividend policy included an annual dividend floor of €300 million, which equates to €0.72 per share.

($1 = €0.8930)

(Reporting by Christoph Steitz, editing by Thomas Seythal and Susan Fenton)