DONG Energy says it has signed an agreement to sell 50% of Borkum Riffgrund 1, a 277.2 MW German offshore wind farm, to the LEGO Group's parent company, KIRKBI A/S, and the Oticon Foundation, via its investment company, William Demant Invest A/S, for a total sum of DKK 4.7 billion.
When completed, Borkum Riffgrund 1 will consist of 77 3.6 MW Siemens wind turbines and will be able to fulfill the electricity demand of more than 285,000 households, according to DONG Energy.
KIRKBI participates in the buying consortium with an investment of DKK 3 billion, giving it an ownership interest of 32%. The Oticon Foundation will invest DKK 1.7 billion, giving it an ownership interest of 18%.
KIRKBI and the Oticon Foundation will pay the purchase price in four installments, with the first installment at the end of this year and the last installment at the end of 2015. The installments make up 11%, 12%, 56% and 21% of the purchase price.
KIRKBI and the Oticon Foundation expect to take over the completed offshore wind farm, as well as the earnings that come with their ownership interests, on Oct. 1, 2015. Until that date, production will primarily accrue to DONG Energy.
Furthermore, DONG Energy has signed a 15-year contract with KIRKBI A/S and William Demant Invest for the operation and maintenance of the wind farm.
The transaction is subject to approval by the competition authorities and is expected to be completed in the second quarter.