Norwegian and Dutch Investors Eye Stake in TenneT – Report

A consortium of Norway's sovereign wealth fund and Dutch pension fund APG is said to be preparing a binding offer to acquire parts of TenneT, the state-owned grid operator in the Netherlands and parts of Germany.

The duo is expected to make the offer by mid-September, German business daily Handelsblatt reported, citing sources with knowledge of the matter.

The consortium would not seek a full takeover of TenneT but rather inject fresh capital in exchange for shares through a capital increase, the report said. It remains unclear whether the fund would take a majority stake in TenneT Germany, though it could expand its holding over time if the bid is accepted, according to the sources.

TenneT needs fresh funds to support its investment plan that includes EUR 200 billion (USD 232.1bn) in spending by 2034 to expand power grids in the Netherlands and Germany. Part of the investment will be funded through debt and equity, the company said in March.

At the time, the group launched a process to attract private investors in its German business while also weighing a possible initial public offering (IPO), after a previous attempt to sell the unit to the German state fell through.

TenneT Germany operates and maintains a 14,000-km (8,699-mile) transmission network and builds and owns grid connections for offshore wind farms.