Ørsted Sells European Onshore Business to CIP for $1.7B

Key Deal Highlights

Danish renewable energy giant Ørsted has agreed to sell its European onshore business to Copenhagen Infrastructure Partners (CIP) in a transaction valued at approximately $1.7 billion (€1.44 billion). This sale marks the completion of Ørsted's planned divestment program aimed at bolstering its financial standing.

Transaction Overview

The deal encompasses a significant portfolio of renewable assets across Europe. This includes approximately 578 megawatts of operational capacity and an additional 248 megawatts currently under construction. The transaction also transfers a development pipeline featuring onshore wind, solar energy, and battery storage projects located in Ireland, the United Kingdom, Germany, and Spain.

Strategic and Financial Impact

According to Ørsted's Chief Financial Officer, Trond Westlie, this move is a crucial step in the company's financial strategy. "The divestment of our European onshore platform finalizes the divestment program that we’ve laid out, and we’ve now substantially strengthened Orsted’s financial position," Westlie stated. The proceeds from the sale are expected to improve the company's balance sheet and provide capital for future core projects.

Summary and Outlook

The sale of its European onshore assets allows Ørsted to streamline its operations and focus on its core offshore wind projects. This strategic divestment concludes a key financial initiative. Market observers will now watch how this capital infusion influences Ørsted's investment capacity and future growth trajectory in the competitive renewable energy sector.

FAQ

Q: Who bought Ørsted's European onshore business?
A: The European onshore business was sold to Copenhagen Infrastructure Partners (CIP), a Danish investment firm.

Q: What was the value of the deal?
A: The transaction is valued at €1.44 billion, which is approximately $1.7 billion.

Q: Why did Ørsted sell these assets?
A: The sale was made to finalize Ørsted's divestment program and substantially strengthen its financial position.

Source: Investing.com