Orsted sells Danish residential, distribution, city lights arms

Denmark's Orsted has completed the sale of its City Light, Radius and residential customer businesses to SEAS-NVE for DKK21.3bn ($3.4bn). Orsted said it was "no longer the right owner" for the divisions, as it was focusing on global renewable energy production. The two firms agreed the deal in September 2019.

Danish offshore wind major Ørsted A/S (CPH:ORSTED) today announced it has wrapped up the sale of its power distribution, residential customer and City Light businesses to SEAS-NVE.

Ørsted has divested the Radius business, which distributes electricity to roughly 1 million homes and businesses, along with its residential customer operations and City Light for DKK 21.3 billion (USD 3.4bn/EUR 2.86bn), excluding cash and debt. The transaction involves the transfer of about 750 employees to the new owner.

The deal was inked in September 2019.

“At Ørsted, we’re committed to a global build-out of our renewable energy production, and our Danish customer activities wouldn’t get the attention they deserve in the future. We’re therefore no longer the right owner,” commented Henrik Poulsen, CEO and president of Ørsted.

The seller noted that its board of directors will now be joined by Daniel Tas Sandermann and Ole Henriksen. They are replacing Hanne Steen Andersen and Poul Dreyer, who in turn will become part of SEAS-NVE.

(DKK 1.0 = USD 0.160/EUR 0.134)

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