Dutch national electricity grid company Tennet is considering selling more of its investment in Germany than originally planned, the Financieele Dagblad reports on Friday.
Tennet, which is 100% state-owned, bought parts of the German grid at the end of 2009 but is faced with extra investment costs of between €5bn and €6n, largely to connect offshore wind parks to the mainland.
The company is now looking for a partner to take a minority stake in that project, but if it fails, the entire division may be sold, CEO Mel Kroon says in an interview.
While Kroon says he is optimistic a partner will be found, sources have told the paper the fixed return on investment of 7% to 8% determined by the German regulator is not attractive enough. Most institutional investors are looking for upwards of 10%, the paper says.
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