German Government to Acquire 25.1% Stake in TenneT Germany
TenneT Holding has reached an agreement with Kreditanstalt für Wiederaufbau (KfW), acting on behalf of the German government, for the sale of a 25.1% stake in TenneT Germany for approximately USD 3.6 billion (EUR 3.3 billion).
The transaction strengthens the capital base of TenneT Germany, which owns and operates critical electricity transmission infrastructure in Germany. The investment follows a previously announced USD 10.3 billion (EUR 9.5 billion) equity commitment from institutional investors APG, GIC, and NBIM, aimed at supporting long-term grid expansion and reinforcement.
Following completion, the German state, via KfW, will hold a 25.1% minority stake, providing it with a blocking position on key strategic decisions. TenneT Holding will retain at least 28.9% of the shares, ensuring continued involvement in governance and maintaining operational synergies between TenneT Germany and TenneT Netherlands, particularly in the development of offshore wind connections in the North Sea.
The equity value of TenneT Germany after the initial capital injection by the institutional investors is estimated at approximately USD 14.4 billion (EUR 13.3 billion). The German state will acquire its stake at the same valuation basis as the institutional investors and is expected to participate proportionally in future capital increases to maintain its shareholding.
Proceeds from the transaction will allow TenneT to repay approximately USD 3.6 billion (EUR 3.3 billion) of shareholder loans to the Dutch state.
Completion of the deal is subject to regulatory approvals and customary closing conditions, with closing expected by the end of the first half of 2026.
Source: TenneT.eu
