ELECTRICITY: TenneT Eyes IPO After Failed German Takeover

TenneT is inviting investment banks to pitch for roles on a potential IPO of the TSO’s German operations, sources told Bloomberg. 

• The Dutch government could announce its plans for Tennet’s German unit as soon as the next few days, the sources added.
• The TSO has also held talks with a range of pension funds and infrastructure investors about selling a stake in the business.
• In June, Germany ended talks with TenneT for a potential takeover of the German business of the TSO due to budgetary challenges according to a statement.
• The previous deal between Germany and TenneT was expected to be valued between €20-25bn, sources told Reuters.
• However, in July, the German government was said to be still in talks with Dutch officials to acquire a minority stake in the German business of TenneT, Germany’s Deputy Energy Minister Philipp Nimmermann said. There has been no update on these talks.
• A key issue in the sale is that the TSO will need to invest in German grid updates in the next years due to the growing amount of renewables and the limited transmission between Germany’s north and south.