Transmission system operator TenneT has agreed to sell a 25.1% stake in its German subsidiary to the German Government, facilitated by Kreditanstalt für Wiederaufbau (KfW), for approximately €3.3bn ($3.9bn).
The transaction, which follows an earlier €9.5bn commitment from institutional investors including APG, GIC and Norges Bank Investment Management, is expected to enhance TenneT Germany's financial standing and support essential infrastructure management within the country.
The sale will adhere to the equity valuation used in a previous transaction with institutional investors in September 2025.
The transaction is due to be completed by the end of the first half of 2026 (H1 2026), pending customary conditions and regulatory approval.
KfW's direct acquisition of shares will allow TenneT to repay approximately €3.3bn of the shareholder loan from the Dutch state.
Following the transaction, TenneT will maintain at least a 28.9% interest in its German subsidiary, ensuring its continued involvement in critical decisions and collaboration with TenneT Netherlands on projects connecting North Sea wind farms to Europe's electricity grid.
The partnership with both private investors and the German Government enhances TenneT Germany's capital base, contributing to necessary power grid improvements and a robust European electricity network.
KfW’s acquisition strategy involves maintaining its 25.1% stake through future capital contributions alongside private investors, who are projected to hold a 46% interest.
TenneT CEO Manon van Beek said: “We warmly welcome the German state via KfW as a shareholder in TenneT Germany. The German state represents one of the most important stakeholders for TenneT in Germany.
“This co-shareholding creates valuable additional involvement, with particular attention to the increasing investment agenda and the new geopolitical reality. TenneT remains committed to ensuring a reliable, sustainable and affordable electricity supply.”
ABN AMRO Bank and Lazard are serving as financial advisors to TenneT for this transaction, with legal advice provided by De Brauw Blackstone Westbroek and Hengeler Mueller.
Citi is acting as the financial advisor to KfW, while CMS is providing legal counsel.
