Reports indicate that KfW, Germany’s state-owned development bank, is re-evaluating the possibility of acquiring a stake in Tennet Deutschland, the German subsidiary of the Dutch electricity grid operator Tennet. According to sources within political and financial circles cited by the Handelsblatt newspaper, discussions surrounding KfW’s potential involvement have resurfaced since the summer recess. A potential investment of 25% is reportedly under consideration.
The Dutch Ministry of Finance, currently the sole owner of Tennet’s German assets, is expected to make a final decision regarding the company’s future on Tuesday. This decision, previously signaled for mid-September by the Dutch Finance Minister, considers several options. These include a direct sale of Tennet shares to a consortium comprising Norway’s sovereign wealth fund Norges, the Dutch pension fund APG and Singapore’s GIC sovereign fund, or a potential initial public offering (IPO) for Tennet Deutschland.
Should a direct sale proceed, a subsequent step being explored involves the German state acquiring a portion of the shares. During negotiations, Tennet Deutschland has been valued at approximately €35 billion, a figure consistent with previous estimates and the company’s own investment plans.