Denmark's Orsted announced on Wednesday that it has reached an agreement to sell a 12.45% minority stake in four of its operational British offshore wind farms to Brookfield for £1.75 billion ($2.28 billion).
“Today's transaction is an important milestone in the farm-down programme as part of our business plan, supporting our significant re-investment in new assets,” stated Orsted CEO Mads Nipper.
This move comes as Orsted seeks to restore investor confidence following a review that led to the company trimming its investment and capacity targets in February and pausing dividend payouts.
The transaction encompasses stakes in the Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension projects, and is expected to close by the end of this year.
“This is Brookfield's first investment in UK offshore wind, which will continue to be a critical part of the energy mix and support the growing demand we see for clean energy,” remarked Connor Teskey, CEO of Brookfield Renewable and President of Brookfield Asset Management.
Post-transaction, Orsted will retain a 37.55% ownership interest in the wind farms.
