The Orsted board of directors has ended plans to sell off several non-core businesses following the Danish government’s withdrawal of political support for the sale.
Orsted said: “The Danish Ministry of Finance informed Orsted that there is no longer the required political support for continuing the ongoing structured divestment process concerning the Danish power distribution and residential customer businesses for power and gas as well as the city light business. Consequently, Orsted’s board of directors has decided to discontinue the process.”
It added that the board still believes Orsted is “not the best long-term owner of the businesses in question, and that it is in the best interest of the company, the shareholders and the customers that they are transferred to another owner, enabling Orsted to strengthen its strategic focus and ambition to create a global leader in green energy”.
Orsted said it will continue to classify the said businesses as “assets held for sale” and continue to investigate the different options for exiting the businesses, which “ultimately also could entail a separation of the said businesses to Orsted shareholders”.
It added that ongoing work separating the businesses into an independent company will continue.