Elia Group German government agrees on 25.1% Tennet stake
Yesterday, the German government (via KfW) secured a 25.1% "blocking minority" in TenneT's German operations. The €3.3bn deal ends years of negotiations between Germany and the Netherlands. The deal is struck at the same equity value following the capital contribution (46%) from ABP, GIC and Norges Bank in 09/25 at a total equity value of 13.3bn. TenneT NL will hold the remaining 28.9%. We understand from the Handelsblatt that KfW will invest an additional €1.7bn before 2035. TenneT GE will now be sufficiently capitalised to complete its FY29 capex plan. This is also good news for Elia as it co-invests to bring North Sea wind energy on shore. The GE government statements mention a total investment budget to support the Capex of its 3 TSO stakes of 7.6bn. That leaves ample room to finance its 20% commitment if and when Elia raises the remaining €2.2bn to finance its FY28 Capex plan. We avoid valuation comparison with Elia as it is unclear what the current capital needs at TennetT GE are after years of uncertainty.Elia System Operator develops, operates and maintains very-high-voltage (380 kV, 220 kV and 150 kV) and high-voltage (70 kV, 36 kV and 30 kV) networks, providing its customers with consultancy and engineering services. Whether in Belgium, Germany or elsewhere in Europe or the U.S., Co. ensures that electricity flows reliably from energy producers to distributors and large corporate customers. Co.'s main activities include transmission operator, system operator and market facilitator, developing and maintaining grid infrastructure, connecting electrical installations to grids, providing transparent access to grids, while taking initiatives to improve electricity market operations.
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