Equinor has acquired a stake in Orsted establishing it as the second largest shareholder after the Danish state.
The transaction involves the purchase of 41,197,344 shares in the Danish developer, corresponding to 9.8% of the shares and votes in the company.
The current market value of Equinor’s holding in Orsted is around $2.5bn.
Subject to obtaining regulatory approvals under applicable Foreign Direct Investment regulations, Equinor intends to increase its ownership to 10%.
There are currently no plans to further increase the stake.
“Equinor has a long-term perspective and will be a supportive owner in Orsted.
“This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets.
“The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development,” said Anders Opedal (pictured), CEO of Equinor.
Equinor is supportive of Orsted’s strategy and management, and is not seeking board representation.
“This investment is in line with Equinor’s strategy of value driven growth in renewables. The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector, and the crucial role offshore wind will play in the energy transition,” said Opedal.
Orsted has a net renewable generation capacity of around 10.4GW and a gross portfolio of offshore wind projects in execution of around 7GW.
The company’s ambition is to achieve a gross installed renewable capacity of around 35-38GW by 2030.
Equinor’s ownership position has been built over time, through a combination of market purchases and a block trade.