TenneT Holding is examining two strategies to meet the equity needs of TenneT Germany: a private share placement and an initial public offering (IPO), with a decision expected in September. The German government has not ruled out the possibility of acquiring a stake in the German transmission system operator (TSO).
On July 15, TenneT Holding announced significant investor interest, finding both an IPO and a private share placement promising options to address TenneT Germany’s capital needs.
“For the IPO, this involves preparing for future investor discussions, including with prospective cornerstone investors. These investors would commit to purchasing a significant portion of shares if the IPO proceeds,” TenneT Holding stated. “For the private placement, TenneT will continue negotiations with potential investors to secure a binding offer to meet TenneT Germany’s capital requirements.”
Addressing TenneT Germany’s capital needs by 2025 is a priority for TenneT and its shareholder. The company aims to decide and implement the chosen option in September.
Since January 1, 2025, TenneT has been operating as two businesses—one in the Netherlands and one in Germany—under TenneT Holding, as part of the strategy to attract private investment for TenneT Germany.
The Dutch State-owned TenneT has sought to sell TenneT Germany since 2023, initially planning for the German State to acquire the business.
On January 2, 2025, TenneT announced that negotiations with the German State, through KfW representing the German Federal government, were terminated after the German government informed the Dutch State it could not complete the transaction due to budgetary constraints.
In March, Reuters reported that TenneT remained open to a German State stake in TenneT Germany and was considering a stock exchange listing as an alternative to raise capital.
According to Reuters, Germany is still pondering a stake in TenneT. German Chancellor Friedrich Merz stated this month that the government remains undecided and in discussions with the Netherlands, Reuters reported on July 21.
TenneT Holding’s first-half 2025 results, released on July 25, showed an underlying revenue of EUR 4.4 billion, up from EUR 4.1 billion in H1 2024, and an underlying EBIT of EUR 1.5 billion, rising from EUR 1 billion in H1 2024.
Investments in Dutch and German onshore and offshore electricity infrastructure rose to EUR 5.5 billion in the first half of this year, compared to EUR 4.6 billion in the same period last year, TenneT reported.
By 2034, TenneT plans to invest EUR 200 billion in grid enhancements in the Netherlands and Germany.
In the first half of this year, TenneT added two new converter platforms offshore Germany, one for the BorWin5 grid connection and one for DolWin5, boosting transmission capacity in the German North Sea to nearly 10 GW.
Original Story at www.offshorewind.biz