By Bart H. Meijer
THE HAGUE (Reuters) -The Dutch government is selling a 46% stake in power grid operator TenneT’s German unit to a consortium of investors for up to 9.5 billion euros ($11.3 billion), it said on Wednesday, kicking off the separation from a business it has been trying to divest for years.
The sale to a consortium of Dutch pension fund manager APG, Norges Bank and Singapore’s sovereign wealth fund GIC comes as funding requirements for power lines soar across the continent, forcing owners of such assets to seek fresh capital elsewhere.
It follows an unsuccessful attempt to sell TenneT Germany to Berlin last year.
Under the agreement, the consortium will take a stake of 46% in TenneT Germany via a private placement of new shares issued by the Dutch government.
With more than 14,000 kilometres (8,699 miles) of power lines, TenneT Germany is the country’s biggest operator of high-voltage transmission grids, upgrades of which have been key to strengthening grids during times of more renewable input.
The deal is expected to spur efforts by Berlin to take a stake in TenneT Germany via state-owned lender KfW, after such plans fell apart last year under the previous government.
The Dutch government on Wednesday said Berlin had stated its interest in taking a minority stake in TenneT Germany, and that it would start talks on a possible investment soon.
($1 = 0.8494 euros)
(Reporting by Bart Meijer and Christoph Steitz;Editing by Bernadette Baum)
Comments