Summer targeted for German grid sale(2)

Vattenfall, the Swedish power group, is looking to conclude the auction process for its German power transmission grid by the summer. The company is thought to be in talks with a number of bidders, but may have to drop its asking price.

Swedish power group Vattenfall is looking to wrap up the auction for its German transmission grid by the summer.

Vattenfall auction:
summer target

A company spokesperson said this morning that it is currently in talks with a number of bidders regarding the sale of the German grid, which covers an area to the north east of the country. The spokesperson added that Vattenfall intends to finalise the deal this summer.

In an interview with Dow Jones last week, Vattenfall’s chief executive Lars Josefsson is reported to have said the company is engaged in “binding talks” with more than one bidder for the network.

Interested parties previously mentioned in connection with the sale include the Ontario Teachers’ Pension Plan and a consortium comprising Allianz, RREEF and Goldman Sachs.

One source close to the deal told Infrastructure Investor that the timing of any potential deal would be a dictated by whether Vattenfall was willing to accept an offer below its asking price, thought to be around the €1 billion mark.

Vattenfall voluntarily launched the sale of its German grid last summer, appointing Citigroup to handle the process.

E.ON, which controls the largest section of transmission infrastructure in Germany, has already committed to the European Commission to sell its grid, while RWE, which operates a section to the west of the country, is also understood to be planning the sale of its gas transmission assets.