TenneT Moving Forward with Decision on IPO or Private Share Sale for German Transmission System Operator; German Government Still Pondering Over Potential Buy-In
TenneT Holding is weighing its options to meet the equity requirements of its German unit, TenneT Germany, with two potential solutions on the table: a private placement of shares or an Initial Public Offering (IPO). The Dutch Finance Minister, Eelco Heinen, is expected to make the final decision in September 2025.
The German government has shown interest in taking a stake in TenneT Germany, submitting a non-binding expression of interest to the Dutch government. However, no final agreement has been reached, and talks are still ongoing. The Dutch Ministry of Finance, which fully owns TenneT Holding, along with the German government, Dutch pension fund APG, and Norway’s Norges sovereign wealth fund, are among the potential stakeholders, depending on the final financing solution.
TenneT has been operating as two businesses, one in the Netherlands and one in Germany, under TenneT Holding since 1 January 2025. In the first half of this year, TenneT Holding reported an underlying revenue of EUR 4.4 billion, an increase from EUR 4.1 billion in H1 2024. The company's underlying EBIT for the same period was EUR 1.5 billion, up from EUR 1 billion in the first half of 2024.
TenneT has made significant investments in Dutch and German onshore and offshore electricity infrastructure, with spending increasing to EUR 5.5 billion in the first six months of 2025, up from EUR 4.6 billion in the same period last year. The company added two new converter platforms in offshore Germany for BorWin5 and DolWin5, increasing the transmission capacity in the German North Sea to almost 10 GW.
For the IPO, TenneT Holding is preparing for future discussions with investors, including prospective cornerstone investors. The company has received significant investor interest for both the IPO and the private share placement. However, no information about the current status of TenneT's IPO or private placement was provided.
The aim is for TenneT to determine in September which of the two options will be chosen and subsequently implemented. The German government has not yet excluded the possibility of buying into TenneT Germany, with the German Chancellor Friedrich Merz stating this month that the government has not yet decided on the matter and is still in talks with the Netherlands.
TenneT has been looking to sell TenneT Germany since 2023, with initial plans for the German State to take over the German business. However, negotiations between TenneT and the German State, represented by KfW, were terminated on 2 January 2025. TenneT is still open to the German State taking a stake in TenneT Germany as an alternative to raise capital, as reported in March by Reuters.
In conclusion, TenneT Holding is currently exploring two options to meet the equity requirements of TenneT Germany: a private placement of shares or an Initial Public Offering (IPO). The Dutch Finance Minister, Eelco Heinen, is expected to make the final decision in September 2025. The German government has shown interest in taking a stake in TenneT Germany, but no final agreement has been reached yet, and talks are ongoing. TenneT has received significant investor interest for both the IPO and the private share placement, but no information about future discussions with investors for the IPO or private placement was provided.
- The Dutch Ministry of Finance, along with potential stakeholders such as the German government, Dutch pension fund APG, and Norway’s Norges sovereign wealth fund, are considering the potential financing solutions for TenneT Holding, which includes a private placement of shares or an Initial Public Offering (IPO).
- TenneT Holding is preparing for future discussions with investors, including prospective cornerstone investors, regarding a potential Initial Public Offering (IPO), as the company aims to determine the best financing solution for its German unit, TenneT Germany, by September 2025.
- TenneT has been open to the German State taking a stake in TenneT Germany as an alternative to raise capital, given significant investor interest in both the IPO and the private share placement, with the German government yet to make a final decision on the matter.
