China’s rich offer for 50Hertz stake ‘likely to overcome German resistance’
As Chinese interest in the German market intensifies, State Grid Corporation of China lines up a healthy offer for 20% of 50Hertz
Frankfurt/Paris — State Grid Corporation of China’s (SGCC) deep pockets will likely overcome any German political resistance to a bid for 20% of power network firm 50Hertz, industry sources said, the latest sign of Chinese interest in the German market. SGCC, the world’s largest utility, is in talks with Australian infrastructure fund IFM Investors about buying half its 40% stake in 50Hertz, one of Germany’s four high-voltage power network operators. Belgian grid operator Elia, which owns 60% of 50Hertz, said on Friday it had two months to decide whether to exercise a right to buy the 20% stake from IFM before SGCC can bid. But investment banking sources said it was unlikely Elia would match SGCC’s price, as it already has operational control. SGCC is expected to bid €800m to €1bn for the 20% stake, two people familiar with the matter said. That dwarfs the €810m Sweden’s Vattenfall received when it sold 50Hertz in 2010. "Given the price, there will not be a counterbid from a third p...
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