Danish competition authorities and the country’s energy agency have approved Orsted’s divestment of three of its businesses to SEAS-NVE.
The sale of the global energy provider’s Radius power distribution arm and its residential customer and City Light businesses is expected to be completed on 31 August 2020.
Due to Orsted’s global expansion in renewable energy, chief executive Henrik Poulsen said it was no longer the “right owner” of Radius and the Danish residential customer and City Light businesses.
SEAS-NVE is Denmark’s second largest cooperatively owned energy company.
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, which was originally announced last September.
Orsted said at the time it expects the transaction to result in a gain on divestment of enterprises Dkr11-12bn, depending on capital employed on the day of closing.
The proceeds from the divestment would finance its global investments in green energy, the Danish developer said.
Danske Bank and Citigroup acted as financial advisers to Orsted.