Germany considers buying into TSO TransnetBW - report

The German government is said to be considering taking a minority stake in TransnetBW, the transmission system operator (TSO) of electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK), newspaper Frankfurter Allgemeine Zeitung said on Wednesday.

The deal could be carried out through state-owned development bank KfW. Sources cited by the paper suggested that a deal with KfW in cooperation with a second financial investor is the preferred option for the company.

EnBW said in February that it was exploring the sale of a stake of up to 49.9% in TransnetBW as the electric utility needs a partner to finance the expansion of power grids in the energy and mobility transition.

The Karlsruhe-based company plans to attract a long-term investor in the power grids business and the proceeds from the divestment will be used to fund the expansion plans amid growing demand for sustainable solutions.

EnBW has already received various inquiries about TransnetBW and plans to launch initial discussions in the coming weeks, the report said.

If a deal with KfW is agreed, this would be the second time the state-owned bank buys into a German transmission system operator. Four years ago, the lender bought a 20% stake in 50Hertz as Germany sought to thwart the acquisition of one of its biggest power grid operators by China's energy giant State Grid.

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