The Danish Ministry of Finance has told Orsted there “is no longer political support” for a plan to sell off a number of non-core businesses.
The offshore wind giant said it is surprised by the decision but believes divesting the power distribution and city lights divisions as well as the power distribution for power and gas arm remain “in the best interest” of the company, shareholders and customers.
Orsted, which is 50% owned by the state, has already lined up a pool of utilities and pension funds as potential buyers, it said.
“To Orsted’s surprise, the Danish Ministry of Finance has now informed Orsted that there is no longer political support for continuing the structured divestment process,” a company statement said.
“It is still Orsted’s assessment that it is in the best interest of the company, the shareholders and the customers that the ownership of the power distribution business, the residential customer business for power and gas and the city light business is transferred to another owner.
“Orsted’s Board of Directors will now assess the situation and discuss the next steps.”
The decision will not change the Danish company’s 2018 financial year outlook.
Orsted started a sales process last year after deciding the units were “expected to decrease in strategic and financial importance” as the company shifts focus entirely to green energy.