May 11 (Renewables Now) - IFM Investors Pty Ltd has renewed talks with State Grid Corporation of China in relation to the latter’s plan to buy the Australian infrastructure fund’s remaining 20% stake in 50Hertz Transmission GmbH, Reuters reports.
Informed people told the news agency that the two parties are holding early-stage talks again, after previously discussing a potential transaction for a whole year. State Grid’s previous attempt was interrupted by Belgian transmission system operator (TSO) Elia System Operator NV (EBR:ELI), which made use of its pre-emption right to buy half of IFM’s 40% interest in 50Hertz for EUR 989 million (USD 1.18bn).
IFM is now left with a 20% shareholding in the German TSO and Elia has a pre-emption right on that stake as well. Reuters noted that it is unclear whether the Belgian firm would also target that interest.
50Hertz Transmission is a TSO active in the North and the East of Germany, one of four that operates in the country. The company is responsible for the transportation of the wind power generated by plants in the German Baltic Sea to the onshore power grid.
As at the end of 2017, there were 172 wind turbines in the Baltic Sea, with a combined capacity of 692.3 MW, feeding electricity into the German grid, according to statistics by Deutsche WindGuard GmbH.
(EUR 1.0 = USD 1.190)