The Anonymous Widower

Ørsted Divests Remaining Stake In London Array For EUR 829 Million

The title of this post, is the same as that of this article on offshoreWIND.biz.

This is the sub-heading.

Ørsted has signed an agreement with funds managed by Schroders Greencoat to divest its remaining 25 per cent minority interest in the London Array offshore wind farm in the UK.

These first three paragraphs outline the deal and give Ørsted reasons.

The total value of the transaction is GBP 717 million (approximately EUR 829 million).

Ørsted originally owned 50 per cent of the project and divested an initial 25 per cent of London Array to Caisse de dépôt et placement du Québec (CDPQ) in 2014.

The company does not have operations and maintenance (O&M) responsibility at the 630 MW London Array, and as the firm only holds a minority interest, Ørsted said it considers the asset non-strategic.

Note.

1. Ørsted is the world’s largest developer of offshore wind power by number of built offshore wind farms.
2. Schroders Greencoat LLP is a specialist manager dedicated to the renewable energy infrastructure sector.

This is a typical transaction, which is enabled between companies in the world’s financial centres all the time.

• Company A has an asset, which generates a predictable cash flow and needs money to invest in similar assets.
• Fund B has lots of money, but needs a predictable cash flow to pay interest to its investors.

So it is not surprising, that Fund B buys the asset from Company A.

I should say that the project management computer system, that I designed; Artemis was leased to the end users.

This eased the process of funding the sales.

In later years, I seem to remember, that we took bundles of leases with companies like BAe, BP, Shell, Texaco and sold them to banks, who needed a safe investment.

July 25, 2023 - Posted by AnonW | Energy, Finance | Artemis, Ørsted, London Array Wind Farm, Offshore Wind Power, Wind Power