BY Richard Summerfield
The Dutch government has agreed to sell 46 percent of its stake in TenneT Holding’s German unit to a consortium of investors for up to $11.3bn.
Under the terms of the deal, the government has agreed to divest its holdings in the unit to three large institutional investors in Europe, APG (investing on behalf of Dutch pension fund ABP), Singapore sovereign wealth fund GIC and Norges Bank Investment Management (NBIM). The three parties will eventually acquire approximately 46 percent of the shares in TenneT Germany.
According to a statement announcing the deal, the transaction gives TenneT Germany an enterprise value of approximately €40bn on a cash and debt free basis, implying an enterprise value to regulatory asset base multiple of 1.09, and a pre-money equity value of €10.4bn as of 31 December 2025.
TenneT Germany manages a large part of the German onshore and offshore electricity grid. The company is a subsidiary of TenneT Holding, which is wholly owned by the Dutch state. As a result of an extensive investment agenda for the energy transition, TenneT Germany has a large equity need. To meet this need, the German government decided in 2024 to allow private investors to participate. The Dutch state will, via TenneT Holding, remain the largest shareholder in the German unit once the deal has completed.
“We are truly pleased to have achieved a structural solution for TenneT Germany’s equity need and I eagerly look forward to partnering with these highly reputable investors,” said Manon van Beek, chief executive of TenneT Holding. “With this financing solution, TenneT remains Europe’s leading crossborder TSO, a key player in system integration, offshore wind connections and market innovation. This announcement marks the end of an intense period during which we have separated our Dutch and German operations within the group, implemented a new funding structure for TenneT Netherlands and secured equity funding for TenneT Germany. I am proud of all my colleagues and our close collaboration with the Dutch Ministry of Finance throughout the process. We will continue our full focus on securing access to reliable, sustainable and affordable electricity supply.”
“This investment serves multiple strategic goals,” said Ronald Wuijster, chief executive of APG Asset Management. “By acquiring a stake in TenneT Germany – a stable, regulated infrastructure asset in an AAA-rated country – we secure a relatively low-risk investment with stable long-term cashflows for our client ABP and our partners. Additionally, it is an impact investment which supports Sustainable Development Goal 7 (Affordable and Clean Energy) and strengthens Europe’s infrastructure autonomy. This shows our expertise in large-scale infrastructure deals and our commitment towards helping our clients and partners reach their goals.”
“GIC is excited to be a part of the next phase of TenneT Germany’s growth,” said Boon Chin Hau, chief investment officer, infrastructure at GIC. “We look forward to partnering with NBIM, APG, TenneT Holding and TenneT Germany to ensure TenneT Germany remains a leading transmission system operator. As a long-term investor, GIC is confident that with Germany’s collaborative and transparent approach to regulation, TenneT Germany will continue to play an important role in Europe’s continued, strong push towards decarbonization.”
“This investment demonstrates our commitment to financing the energy transition,” said Harald von Heyden, global head of energy & infrastructure at NBIM. “We are excited to partner with TenneT Holding, APG and GIC to support the growth of TenneT Germany. TenneT Germany’s transmission grid is essential for delivering renewable energy where it’s needed in Europe’s largest economy.”
News: Dutch government sells nearly half of TenneT Germany for $11.3 billion