Dutch state-owned grid operator TenneT Germany is preparing to raise up to €10bn in a private placement, in a move that could precede a stake sale to the German government, according to the Financial Times.
The deal values the transmission operator at about €40bn including debt, the FT said, citing five people with knowledge of the plans. The Dutch state would retain around 55% of the company after the transaction.
Participants in the placement reportedly include Norway’s sovereign wealth fund Norges, a Dutch pension fund and an Asian sovereign fund. The transaction is expected to close in 2026, according to the news organisation.
The FT noted that the Dutch government has long sought to sell the German grid business, having grown reluctant to commit taxpayer funds to modernising German electricity infrastructure.
Talks with Berlin collapsed last year over valuation, but since the coalition of Chancellor Friedrich Merz took office in May, the German government has resumed work on acquiring a stake.
Berlin is considering an offer for 25% of TenneT Germany, the FT reported, adding that the capital increase could help resolve previous disagreements over valuation.
The capital injection would strengthen TenneT’s position to take on further debt to finance expansion of the German grid as the country accelerates its energy transition, according to the FT.
TenneT declined to comment.