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Dutch weighing stake sale vs partial IPO of TenneT Germany

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Decision now expected in September vs summer previously

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Several investors interested in minority stake, minister

says

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Any IPO would take place in the fourth quarter, minister

says

(Adds context, details)

By Benoit Van Overstraeten

AMSTERDAM, June 30 (Reuters) - The Netherlands will

announce in September whether it will sell a minority stake in

the German arm of power grid operator TenneT or pursue a partial

IPO, the government said on Monday, in what could be one of

Europe's biggest deals in 2025.

The Dutch government embarked on a dual track process for

TenneT Germany after a partial sale to German state lender KfW

failed to materialise last June. It had initially hoped

to come to a decision before the summer break.

"Based on the information I have received in recent weeks, I

note that many investors are interested in participating in

TenneT Germany," Dutch finance minister Eelco Heinen said in a

letter to the president of the lower house of parliament.

TenneT Germany had a regulated asset base, a key valuation

gauge for energy grids, of 27.8 billion euros ($31 billion) as

of 2024, which is set to increase by 25% each year through 2029,

according to an investor presentation on its website.

"Originally, the decision moment between the IPO and the

private issue was scheduled around the start of the summer

recess," Heinen said.

"Both pathways could be promising and attractive options to

meet the capital needs. I have therefore decided to elaborate

both pathways in parallel this summer (...) I intend to let you

know in September which of the two options will be implemented."

Heinen also said that several investors had made non-binding

offers for a minority stake in TenneT Germany.

Last month, Reuters cited sources as saying that funds

including Apollo Global Management ( APO ), Canada's Caisse de

depot et placement du Quebec and Macquarie were

interested in such a sale, and that BlackRock ( BLK )-owned

Global Infrastructure Partners and CPP Investment Board, which

manages Canadians' pension savings, might be too.

The sources added that a sale of new shares in TenneT

Germany could raise up to 12 billion euros ($14 billion),

although they said the amount could be significantly lower

depending on the size of the stake sold and the level of debt.

In his letter, Heinen said that any partial IPO of TenneT Germany would occur in the fourth quarter of 2025.

($1 = 0.8498 euros)

(Additional reporting by Bart Meijer. Editing by Susan Fenton

and Mark Potter)