German chemicals giant BASF has agreed to sell a portion of its stake in the 1500MW Hollandse Kust Zuid offshore wind farm off the Netherlands to Allianz Capital Partners, on behalf of Allianz Insurance Companies, for an undisclosed price.
Under the terms of the deal Allianz will buy 25.2% of the wind farm from BASF, which itself had acquired 49.5% from Vattenfall in September.
BASF had previously said that it intended to reduce its investment by selling shares to a financial co-investor.
The closing of the transaction with Allianz is subject to merger control approvals.
Following the closing, which is expected in the first quarter of 2022, BASF will consolidate its remaining 24.3% participation at-equity.
BASF will continue to receive most of the power produced by its originally acquired share of 49.5% of HKZ under a long-term fixed-price corporate power purchasing agreement.
“This agreement secures substantial value for both BASF as purchaser of the power produced and Allianz as a financial investor,” BASF said.
HKZ is expected to become fully operational in 2023.