TenneT starts partial sale of German power grids

According to insiders, the Dutch state-owned electricity grid operator TenneT has entered into talks with investors about a partial sale of its German subsidiary. The Dutch government hopes to raise up to €12 billion from the sale of a minority stake in TenneT Germany, several people familiar with the matter told Reuters.

Interested parties were asked to submit non-binding offers by mid-June. Two of the insiders said the amount of the sale proceeds would depend on how much debt TenneT adds to the part up for sale.

The uncertain situation surrounding US President Donald Trump's tariff policy has slowed down larger transactions in recent weeks. However, online businesses have the advantage of generating secure revenues thanks to complete regulation. This could also be a selling point for other potential buyers in times of falling interest rates and an uncertain economy.

Door open for Germany's entry

These include investors such as Apollo, the Canadian Caisse de dépôt et placement du Québec (CDPQ), and Macquarie, two insiders said. Bids are also expected from BlackRock's Global Infrastructure Partners (GIP) and CPP Investment Board (CPPIB), another insider said. The companies, as well as TenneT and the Dutch government, declined to comment. Given the high price, it's likely that several investors will join forces.

TenneT, Germany's largest transmission system operator

TenneT Germany operates grids with a length of more than 14,000 kilometers, making it the largest transmission system operator in Germany. The company achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) of 2.2 billion euros in 2024. Last year, talks with the German state bank KfW regarding a partial sale failed. However, the government in The Hague remains open to Germany's participation. An IPO is also a possibility. The electricity grids are key to the energy transition. However, their expansion and modernization are very capital-intensive, which is why many operators are bringing partners on board. TenneT's investment program envisages expenditures of 110 billion euros by 2034.

APA/ag