Latest news with #TenneTGermany
Yahoo
16-05-2025
- Business
- Yahoo
Dutch grid operator TenneT negotiates sale of minority stake in German unit
State-owned Dutch power grid operator TenneT has reportedly initiated discussions with potential investors regarding the sale of a minority stake in its German division, Reuters has reported. The move could lead to one of the largest European transactions of 2025. The German unit, with a regulated asset base of €27.8bn ($31.1bn) as of 2024, expects 25% annual growth through to 2029. A sale could potentially raise up to €12bn, though the final amount will depend on the stake size and debt level. The Dutch state has pledged to maintain a BBB-rated capital structure for TenneT Germany, aligning with other German high-voltage grid operators. Non-binding bids for TenneT Germany are anticipated by mid-June 2025. The development comes amidst a challenging deal-making environment due to the US trade war. Regulated grid assets such as TenneT Germany, offering fixed returns, are deemed attractive investments in the current economic climate of falling interest rates and uncertainty. Funds such as Apollo Global Management, Canada's Caisse de depot et placement du Quebec and Macquarie have shown interest, with BlackRock's Global Infrastructure Partners and CPP Investment Board also expected to consider the opportunity. The potential deal's size may encourage collaboration among interested parties, although there is no certainty of a transaction. All mentioned funds have refrained from commenting. After a failed partial sale to KfW in 2024, the Dutch government is considering both a sale and a partial initial public offering for TenneT Germany. Dutch Finance Minister Eelco Heinen has expressed his intention to decide on the best course of action by early July, following investor discussions and non-binding bids. TenneT Germany, with more than 14,000km of high-voltage power network, reported earnings before interest, taxation, depreciation and amortisation of €2.2bn in 2024. In April 2025, TenneT announced a significant restructuring to financially separate its Dutch and German operations, ensuring a solid foundation for both entities. This involves transferring the company's senior debt from the holding level to TenneT Netherlands. "Dutch grid operator TenneT negotiates sale of minority stake in German unit" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Exclusive-TenneT in talks with funds to sell up to $13 billion stake in German unit, sources say
By Christoph Steitz, Andres Gonzalez and Emma-Victoria Farr FRANKFURT/LONDON (Reuters) -State-owned Dutch power grid operator TenneT has kicked off talks with investors about the sale of a minority stake in its German division, four people familiar with the matter said, in what could become one of Europe's largest deals in 2025. TenneT Germany has a regulated asset base (RAB), a key valuation gauge for energy grids, of 27.8 billion euros ($31 billion) as of 2024, which is set to grow by 25% each year through 2029, according to an investor presentation on its website. A sale of new shares in TenneT Germany could raise up to 12 billion euros, three of the people said, adding that the amount could be significantly lower depending on the size of the stake settled upon and level of debt. The Dutch state has committed to guarantee a BBB-rated capital structure for TenneT Germany, in line with other German high voltage grid operators (TSOs). Non-binding bids for the business are due mid-June, the sources said, speaking on condition of anonymity because the matter is private. TenneT and the Dutch government declined to comment. The U.S. trade war has stymied dealmaking in recent weeks but grid assets, which are regulated and provide fixed returns, are expected to be more attractive to investors against a backdrop of falling interest rates and heightened economic uncertainty, the sources said. Funds including Apollo Global Management, Canada's Caisse de depot et placement du Quebec (CDPQ) and Macquarie are interested in the sale, two of the people said. BlackRock-owned Global Infrastructure Partners (GIP) and CPP Investment Board (CPPIB), which manages Canadians' pension savings, are also expected to show interest, one of the people and a third one said. More suitors could emerge and parties are expected to team up given the potential size of the deal, two of the people said, adding there was no certainty of a transaction. Apollo, CDPQ, Macquarie, GIP and CPPIB all declined to comment. The Dutch government has embarked on a dual track process for TenneT Germany after a partial sale to German state lender KfW failed to materialise last year. The Hague remains open to Germany taking a stake in the company. Apart from a sale, the government could opt for a partial initial public offering of the business. Dutch Finance Minister Eelco Heinen, in a letter sent to parliament this week, said he wanted to settle on one of the two paths in early July. "Based on discussions with investors and expected non-binding bids, I will assess with TenneT what is expected to be the best option," he said in the letter dated May 13. With a network of more than 14,000 kilometres, TenneT Germany is the country's largest high-voltage power grid operator and made earnings before interest, tax, depreciation and amortisation of 2.2 billion euros in 2024. ($1 = 0.8919 euros)
Reuters
14-05-2025
- Business
- Reuters
Exclusive: TenneT in talks with funds to sell up to $13 billion stake in German unit, sources say
FRANKFURT/LONDON, May 14 (Reuters) - State-owned Dutch power grid operator TenneT has kicked off talks with investors about the sale of a minority stake in its German division, four people familiar with the matter said, in what could become one of Europe's largest deals in 2025. Tennet Germany has a regulated asset base (RAB), a key valuation gauge for energy grids, of 27.8 billion euros ($31 billion) as of 2024, which is set to grow by 25% each year through 2029, according to an investor presentation on its website. The Dutch government could raise up to 12 billion euros from a minority stake sale in the division, three of the people said, adding that the amount could be significantly lower depending on the size of the stake settled upon and level of debt. The Dutch state has committed to guarantee a BBB-rated capital structure for TenneT Germany, in line with other German high voltage grid operators (TSOs). Non-binding bids for the business are due mid-June, the sources said, speaking on condition of anonymity because the matter is private. TenneT ( opens new tab and the Dutch government declined to comment. The U.S. trade war has stymied dealmaking in recent weeks but grid assets, which are regulated and provide fixed returns, are expected to be more attractive to investors against a backdrop of falling interest rates and heightened economic uncertainty, the sources said. Funds including Apollo Global Management (APO.N), opens new tab, Canada's Caisse de depot et placement du Quebec (CDPQ) and Macquarie ( opens new tab are interested in the sale, two of the people said. BlackRock-owned (BLK.N), opens new tab Global Infrastructure Partners (GIP) and CPP Investment Board (CPPIB), which manages Canadians' pension savings, are also expected to show interest, one of the people and a third one said. More suitors could emerge and parties are expected to team up given the potential size of the deal, two of the people said, adding there was no certainty of a transaction. Apollo, CDPQ, Macquarie, GIP and CPPIB all declined to comment. The Dutch government has embarked on a dual track process for TenneT Germany after a partial sale to German state lender KfW ( failed to materialise last year. The Hague remains open to Germany taking a stake in the company. Apart from a sale, the government could opt for a partial initial public offering of the business. Dutch Finance Minister Eelco Heinen, in a letter sent to parliament this week, said he wanted to settle on one of the two paths in early July. "Based on discussions with investors and expected non-binding bids, I will assess with TenneT what is expected to be the best option," he said in the letter dated May 13. With a network of more than 14,000 kilometres, TenneT Germany is the country's largest high-voltage power grid operator and made earnings before interest, tax, depreciation and amortisation of 2.2 billion euros in 2024. ($1 = 0.8919 euros)
Yahoo
21-04-2025
- Business
- Yahoo
TenneT announces new funding structure for Dutch and German operations
TenneT has announced a significant restructuring of its funding to facilitate the separation of its Dutch and German operations into two independently operating and financed entities. This move is aimed at addressing the equity needs of its German operations and ensuring a robust financial foundation for both companies. The proposed new funding structure will involve transferring TenneT's existing senior debt from the holding level to TenneT Netherlands. This strategic shift is designed to safeguard the interests of senior debt holders and prevent structural subordination due to anticipated new debt at the operational levels of TenneT Netherlands and TenneT Germany. TenneT CFO Arina Freitag said: "Today is an important step towards the formation of two separately financed national TSOs under the umbrella of TenneT Holding, in line with TenneT's strategic objectives. With this new financing structure, we can continue to ensure a safe and reliable electricity supply in the Netherlands and Germany." To support this transition, TenneT Netherlands is poised to receive a state guarantee from the Netherlands, covering its payment obligations under both current and future debt financing. This includes debt involved in the planned transfer, with certain exceptions. The guarantee is also expected to include a keep-well obligation, although it is still pending approval from the Dutch parliament. Once approved, the state guarantee is anticipated to bring TenneT Netherlands' senior debt credit risk in line with that of the Dutch state itself. Dutch Minister of Finance Eelco Heinen said: "We are confident that the new funding structure, supported by the state guarantee, will provide TenneT Netherlands with a strong financial basis to continue to invest in the Dutch electricity grid, and at the same time enable separate funding of TenneT Germany.' In a separate development, TenneT has also launched an initiative to offer over 9GW of capacity on its high-voltage grid to high-energy users during off-peak hours. "TenneT announces new funding structure for Dutch and German operations" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Bloomberg
17-04-2025
- Business
- Bloomberg
TenneT to Restructure Funding to Split Dutch, German Operations
TenneT Holding B.V. is planning to restructure its balance sheet as it prepares to split its Dutch and German operations. The Dutch state-owned grid operator is creating two standalone entities — TenneT Netherlands and TenneT Germany — each with independent financing arrangements, according to a statement. The move is designed to meet the growing capital needs of its German transmission system, which is playing a pivotal role in Europe's energy transition.
