Orsted has signed an agreement to divest its Radius Danish power distribution, residential and City Light businesses to SEAS-NVE.
The transaction is priced at Dkr21.3bn (€2.85bn) on a cash and debt-free basis, with the proceeds to be paid in cash upon closing of the transaction.
The deal is subject to regulatory approvals by the competition authorities and the Danish Energy Agency.
Closing is expected to take place in first half of 2020.
Orsted chief executive Henrik Poulsen (pictured) said: “With Orsted’s global expansion in renewable energy, we’re no longer the right owner of Radius and the Danish residential customer and City Light businesses.
“We’re therefore happy to enter into an agreement with SEAS-NVE, which is Denmark’s second largest cooperatively-owned energy company, to buy these businesses.
“The agreement ensures an attractive transaction for Orsted’s shareholders and provides a good future home for the customers and for our highly skilled employees.
“We’ll use the proceeds from the divestment to continue our global investments in green energy.”
Orsted expects the transaction to result in a gain on divestment of enterprises Dkr11-12bn, depending on capital employed on the day of closing.
Danske Bank and Citigroup acted as financial advisers to Orsted.