Ørsted divests Danish power distribution, residential customer and City Light businesses to SEAS-NVE

Ørsted has signed an agreement to divest its Danish power distribution (Radius), residential customer and City Light businesses to SEAS-NVE for a price of DKK21.3 billion (US$3.15 billion) on a cash and debt-free basis. The proceeds will be paid in cash upon closing of the transaction.

The agreement has been entered into following an unsolicited, non-binding offer which Ørsted received from SEAS-NVE in second half of June 2019.

The transaction is subject to regulatory approvals by the competition authorities and the Danish Energy Agency. Closing of the transaction is expected to take place in first half of 2020.

At closing of the transaction, approximately 750 employees working for Radius and the Danish residential customer and City Light businesses will transfer to employment with SEAS-NVE.

Radius has approximately one million power customers in the Copenhagen area, North Zealand, and parts of central Zealand. The power supply to the customers is delivered through a grid reaching approximately 19,000km.

The residential customer business sells electricity to approximately 717,000 customers, gas to approximately 105,000 customers, and has approximately 44,000 heat customers.

The City Light business operates and maintains approximately 145,000 street lights in 15 municipalities on Zealand.

Danske Bank and Citigroup acted as financial advisers to Ørsted in connection with the transaction.