Investor-owned power and gas company E.ON has agreed to sell an 80% stake in its 207 MW Rodsand II offshore wind farm to the Danish energy company SEAS-NVE. The transaction values the wind farm, located in the Baltic Sea, at DKK 3.5 billion on a 100% enterprise basis.
At closing, a loan of DKK 2.1 billion will be taken out by the wind farm company and the proceeds remitted to E.ON. SEAS-NVE will then purchase 80% of the equity for DKK 1.1 billion. As a result, the total cash proceeds for E.ON will be DKK 3.2 billion.
E.ON says the deal is consistent with its "less capital, more value" strategic approach. E.ON will retain a 20% stake and will remain the operator for the lifetime of the wind farm.
"For E.ON, the sale of a majority stake in one of our largest offshore wind farms will successfully recycle our capital, ensuring we are able to realize more of our excellent renewables pipeline," says E.ON Chief Financial Officer Klaus Schafer.
The final transaction is subject to regulatory approval, and the deal is expected to close around the end of the year.