TSO giant TenneT plans listing for German unit as alternative to private deal
A public listing could raise up to €20bn after budget-constrained German government abandoned takeover plans for TenneT
Dutch-German transmission system giant TenneT is preparing to raise equity through third-party investors, and both a private investment deal or a stock market flotation for TenneT Germany are being considered.
The investor search and now publicly stated consideration for an IPO comes after efforts by Germany’s government abandoned efforts to take over TenneT Germany through its development bank KfW.
After Germany had boosted its offshore wind target to 70GW by 2045 — a volume requiring massive financial resources — TenneT’s management as well as the Dutch state, which owns the company, had said the required financing would be too large for it to bank.
TenneT operates more than 25,000km of high voltage connections in Germany and the Netherlands, among them the Dutch and German offshore wind grid links.
Despite a change in the Netherlands to a less renewables-friendly government and the end of Germany’s Social Democrat-Green-Liberal government, TenneT last year invested €10.6bn in onshore and offshore grid expansion projects, 38% more than in 2023.
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