Equinor acquires 9.8 per cent stake in Danish offshore wind developer

Norwegian state-owned energy company Equinor has acquired 41,197,344 shares in Ørsted, corresponding to 9.8 per cent of the shares and votes in the Danish offshore wind farm developer.

The transaction establishes Equinor as the second largest shareholder in Ørsted, after the Danish State, which holds a controlling stake in the company. Equinor said that it is supportive of Ørsted’s strategy and management, and is not seeking board representation.

Ørsted has a net renewable generation capacity of around 10.4 GW, and a gross portfolio of offshore wind projects in execution of around seven GW. The company’s ambition is to achieve a gross installed renewable capacity of around 35 to 38 GW by 2030.

Equinor’s ownership position has been built over time, through a combination of market purchases and a block trade.

The current market value of Equinor’s holding in Ørsted is around US$2.5 billion, based on a closing price of DKK418 (US$61.47) per share and a USD/DKK exchange rate of 6.8 on Friday, October 4.

Subject to obtaining regulatory approvals under applicable Foreign Direct Investment regulations, Equinor intends to increase its ownership to 10 per cent. There are currently no plans to further increase the stake.

The transaction will be executed within Equinor’s communicated financial framework.