The Dutch power grid operator Tennet gives a large minority share in its Germany business to an international investor consortium. At the same time, he paves the way for the German state for an introduction. In a capital increase of up to 9.5 billion euros, the group of three acquires a package with which it then holds 46 percent of Tennet Germany. Tennet is planning to speak to the State Bank KfW about Germany’s participation, board chief Manon van Beek and CFO Arina Friday said on Wednesday in conversation with the F.A.Z. “We always said that the door is still open to the federal government,” said Freitag. “We are still in very good behavior with the federal government, it is our most important stakeholder.” First of all, the Norwegian State Fund Norges, the Dutch Pension Fund APG and the Singapore GIC are now in. Norges is a consortial leader with half of the minority package, the other parties will hold a quarter of the package each. APG creates funds for the Pension Fund ABP, the company pension for employees in the Dutch public service and in education. “With today’s transaction – with 9.5 billion euros – we have everything necessary and even a little more to make all the foreseeable investments and keep a good creditworthiness,” said van Beek. The proceeds “flows directly to Tennet Germany because we need the equity to take up further bonds”, according to Freitag.Tennet-Deutschland boss Tim Meyerjürgens added to the F.A.Z.: “The entry of APG, GIC and NBIM at Tennet Germany is a strong signal for Germany and for the energy transition.” Long -term trusting partners for growth are gained: “By the end of 2029, we will jointly invest 65 billion euros in a powerful power grid – the basis for security of supply, industry and digitization.” Minister of Economic Affairs welcomed the Federal Government’s solution was relieved on Wednesday. “The Federal Ministry of Economic Affairs and Energy welcomes that a solution is now being found so that Tennet Germany will be equipped with sufficient equity in the future,” said a spokesman for Katherina Reiche (CDU). Tennet faces “significant investment needs”. Reich’s spokesman confirmed the federal government’s interest in buying: “We continue to examine a minority stake in accordance with the specification of the coalition agreement.” There it is said that the government is thinking of “strategic federal participations in the energy sector”, also among network operators. The Union Group’s economic and energy policy spokesman, Andreas Lenz (CDU), added: “The capital increase and the subsequent participation of the federal government in Tennet Germany are good news. With a critical infrastructure, it is important to have a foot in the door.” Tennet Germany is assessed in the now announced transaction with 40 billion euros. The government in the Hague has thus decided against an IPO that would have taken place on the Frankfurt Stock Exchange. From the point of view of the Börsenplatz, this is another setback. The Dutch state had set up a two -lane process and mandated investment banks for both variants: the direct sale of a minority share to investors or an IPO.Tentnet Germany is the largest of the largest of the four local transmission system operators. A good 14,100 kilometers of lines transport electricity in the north-south direction. The German state is already involved in the operators Transnet BW and 50 Hertz, not in Amprion. Tennet had come to the German business when the German power grid from Düsseldorf supplier Eon acquired in 2010. Now the Dutch state wants to hand over the part again because there are many billions of euros in investments due to the energy transition. Tennet Germany has to invest an average of 13 billion euros annually. The highest amounts are incurred in 2027 and 2028. By 2034, ten billion euros will be estimated annually. Tennet Germany under German state participation? How would Tennet Germany continue under German state participation? 50-Hertz boss Stefan Kapferer, in whose company the federal government is already 20 percent involved, was satisfied with the experience. “We drove well with the KfW as a shareholder, the collaboration is very constructive and not politically driven.” He does not see that, after the upcoming entry of the three civil funds for electricity customers, the current entry changes. Especially not with a view to the prices, the amount of which there are many symptoms of private households and industrial companies. “Changes in the owner structure have no direct influence on price development,” said Kapferer. “But a strengthened equity base can make it easier to manage the high investments.” If you want to relieve consumers, you have to go other ways. “As far as prices are concerned, it is important to raise efficiencies in network expansion,” he said. The recent monitoring report on the energy transition shows “considerable potential”: “For example, one can lay cheaper overhead lines instead of underground cables, and the reduction of offshore expansion goals by 2045 also saves a lot of money to 60 gigawatt.” There is the possibility to avoid many billions of euros in connection costs without endangering climate goals. “A total of around 20 billion euros could be saved in network investments if we realize the three newly planned direct current compounds as an overhead line instead of as an earth cable.” This would be dampening to the network charges and thus affect electricity prices for private and industrial consumers, but it also made it clear that the return flows for the network operators, such as equity interest, would have to be so that the business is worthwhile and sufficient investment capital. “The network expansion can only be financed if the conditions for the self -financing of the network operators are correct,” said Kapferer. “Politics and the Federal Network Agency have to be clear about this.” Andreas Lenz from the Union sees it a little differently. “Of course there are forms of investment where higher returns wave,” he said. However, the current interest is interesting for long -term -oriented donors such as sovereign funds: “After all, regulated business with the network charges is quite certain.” The energy economist Andreas Löschel considers the rapid and extensive expansion of the power grids to be a central prerequisite for the success of the energy transition. “The network operators present the necessary major investments with special challenges, because network operators must have sufficient equity for financing,” he says. This is the only way to mobilize the necessary debt for investments. Against this background, it is an important sign that recently managed to win additional equity for the energy transition. The conflict of goals between higher yields and lower network charges exist. Network operators will continue to struggle with more comprehensive recognition of cost components and a higher level of equity, since this ensures income and thus support the further development of equity and thus new investments. A long process is coming to an end in the Netherlands. The executive Dutch finance minister Eelco Heinen from the Liberal VVD had always been open to an IPO as a second variant. Although delayed, the process has continued regardless of political turbulence. In June, the four-party coalition of the center and right parties was broken after less than a year in office because the right-wing outside party PVV under Geert Wilders with reference to disagreement on asylum and immigration. In the meantime, a second party has left the cabinet, the Centristy new social contract (NSC). The remaining two parties continue the business – until the early election on October 29 and most likely beyond, during the subsequent coalition negotiations, which could take months. As usual, the parliament had defined those political issues that should not wait for a next coalition. Tennet transaction was one of these topics. In a letter to the parliament, Heinen informed about the new owner structure on Wednesday. “I will take advantage of the next time with Tennet and the private investors to talk to the German state about his possible participation,” the minister wrote. “I am striving to inform you about the turn of the year.” The German state had wanted to completely take over the local Tennet subsidiary-which would have cost about 20 billion euros. In mid -2024 negotiations failed with the KfW, which acted on behalf of the federal government; The traffic light coalition did not agree at the time. The then Dutch finance minister Steven van Weyenberg cited the German budget shortage as the reason for negotiating. Tennet now leads two national organizations under the roof of the holding to facilitate the separation: One in the Netherlands, one in Germany with its own management.TENNET had named ABN Amro, Goldman Sachs and Morgan Stanley as a consultant for an IPO, ABN Amro and Lazard for an M&A transaction. Lazard also has a coordinating roof mandate for both variants. The government’s investment bank is at the side of the government. A company presentation from the summer states that the Dutch state is expected to be the foreseeable time of indirect majority owners, and further share sale is not to be expected by 2029.
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