June 4 (Renewables Now) - IFM Global Infrastructure Fund has informed Belgian transmission system operator (TSO) Elia System Operator SA/NV that it intends to fully exit 50Hertz Transmission GmbH by selling its remaining 20% stake in the German firm’s holding company.
The Australian infrastructure fund sold half of its 40% interest in Eurogrid International, the holding company of 50Hertz, to Elia in April for about EUR 989 million (USD 1.16bn). Now, Elia has two months to decide on whether to make use of a pre-emption right and thus acquire 100% of Eurogrid.
According to Elia’s announcement from last week, IFM has an agreement in place with a third party for the acquisition of the 20% stake. A Reuters report from last month says that State Grid Corporation of China was again holding talks with the fund regarding a potential purchase of the interest.
Elia said in its statement that it will analyse the possible transaction and will make a decision based on its ability to maintain a strong investment grade rating.
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.
(EUR 1.0 = USD 1.169)