KfW, Germany’s state-owned development bank, is reportedly exploring a potential acquisition of a stake in Tennet Deutschland, according to sources within political and financial circles cited by the Handelsblatt. Discussions regarding KfW’s involvement have reportedly resurfaced since the summer recess, with speculation suggesting a possible investment of 25 percent.
The Dutch Ministry of Finance, currently the owner of Tennet’s German electricity grid operations, is expected to finalize a decision regarding the company’s future as early as Tuesday. The Dutch Finance Minister had previously indicated a decision would be made mid-September. Alternatives being considered alongside KfW’s potential investment include a direct sale of Tennet shares to a consortium comprising Norway’s Norges sovereign wealth fund, the Dutch pension fund APG and Singapore’s GIC sovereign fund, or an initial public offering (IPO) for Tennet Deutschland.
Should a sale or IPO occur, sources indicate that the German government could then consider acquiring a portion of the shares in a subsequent phase. Valuations during negotiations are said to have placed Tennet Deutschland at approximately €35 billion, aligning with previous statements and investment plans released by the company.
