Danish firm Orsted has signed a deal to sell off its power distribution business for £2.5 billion to allow a “significant expansion” into the offshore wind sector.
Orsted, formerly Dong Energy, said it had agreed to enter a “unsolicited, non-binding offer” with Seas-Nve.
Seas-Nve will acquire Orsted’s Danish power distribution (Radius), residential customer and City Light businesses.
A total of 750 employees working for Radius and the Danish residential customer and City Light businesses will transfer to Seas-Nve.
The agreement follows the decision made in June 2018 by Orsted’s board and executive management that Orsted was “not the best long term-owner of these businesses”.
Henrik Poulsen, chief executive and president of Orsted, 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.”