Investing.com -- Orsted A/S, the Danish energy company, initiated the process to sell approximately 50% of its stake in the Hornsea 3 wind farm, one of the largest planned offshore wind projects off the coast of the United Kingdom (TADAWUL:4280), Bloomberg News reported Monday.
The move is part of Orsted's broader divestment strategy under the leadership of CEO Mads Nipper, aimed at executing a turnaround plan initiated earlier this year.
The sale represents a significant moment for Orsted as it embarks on its most ambitious project to date, amidst the backdrop of historical challenges faced by the offshore wind industry. While the exact price Orsted is seeking for the stake remains undisclosed, the potential buyer would be expected to contribute to the funding of the construction.
The Hornsea 3 project is designed to generate enough electricity to power over three million British households and is described by the company as an £8.5 billion infrastructure investment.
Orsted's divestment strategy has been gaining momentum, as evidenced by the sale of a £1.75 billion stake in four operational wind farms in British waters to Brookfield in October. The sale of Hornsea 3 is anticipated to gauge investor interest in Orsted's developmental projects.
Earlier this year, Orsted achieved a significant victory in the UK by securing government-backed contracts in an auction, which resulted in a 45% increase in the price for electricity from a portion of the Hornsea 3 wind farm.
To facilitate the transaction, Orsted has engaged financial advisers from Bank of America Corp (NYSE:BAC). and Credit Agricole (EPA:CAGR) SA. However, representatives from Orsted, Bank of America, and Credit Agricole have not provided comments on the matter.
Orsted had previously indicated plans to sell down its stake in Hornsea 3 during 2025.
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