Share this article
TenneT Holding is exploring two options to meet TenneT Germany’s equity requirements: a private placement of shares and an initial public offering (IPO), and expects to decide on which option to proceed with in September. The German government has not yet excluded the possibility of buying into the German transmission system operator (TSO).
On 15 July, TenneT Holding said that it had received significant investor interest and that an initial public offering (IPO) and a private share placement were found to be promising options to address the capital requirements of TenneT Germany.
“For the IPO, this means preparing for future discussions with investors, including prospective cornerstone investors. These are investors who will commit, at the time of the future IPO announcement, to purchasing a significant portion of the shares if the IPO proceeds. For the private placement, TenneT will continue talks with potential investors to get to a binding offer to fulfill TenneT Germany’s capital requirements” , TenneT Holding said.
With finding a structural solution for TenneT Germany’s capital requirements in 2025 being a priority for TenneT and its shareholder, TenneT aims to determine in September which of the two options will be chosen and subsequently implemented, the holding company said earlier this month.
TenneT has been operating as two businesses, one in the Netherlands and one in Germany, under TenneT Holding since 1 January 2025, as part of the plan to bring in private investment into TenneT Germany.
Related Article
TenneT Establishing New Funding Structure to Separate Dutch, German Ops Into Two Standalone Companies
The Dutch State-owned TenneT has been looking to sell TenneT Germany since 2023, with initial plans for the German State to take over the German business.