Equinor Buys 9.8% Minority Stake In Orsted Worth $2.5 Bln; Stock Down

(RTTNews) - Norwegian petroleum refining firm Equinor ASA (EQNR) Monday said it has acquired 41.20 million shares in Orsted A/S, corresponding to 9.8 percent of the shares and votes in the company.

The current market value of Equinor's holding in Orsted is around $2.5 billion, based on a closing price of DKK 418 per share on October 4.

Equinor intends to increase its ownership to 10 percent, subject to obtaining regulatory approvals under applicable Foreign Direct Investment regulations. There are currently no plans to further increase the stake.

The company said the deal will be executed within its communicated financial framework.

With the stake purchase, Equinor is now the second largest shareholder in Orsted, after the Danish State, which holds a controlling stake in the company.

Equinor added that it is supportive of Orsted's strategy and management, and is not seeking board representation.

Orsted has a net renewable generation capacity of around 10.4 GW, and a gross portfolio of offshore wind projects in execution of around 7 GW. It aims to achieve a gross installed renewable capacity of around 35 to 38 GW by 2030.

Anders Opedal, CEO of Equinor, said, "This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets. The exposure to producing assets complements Equinor's operated offshore wind portfolio of large projects under development... This investment is in line with Equinor's strategy of value driven growth in renewables."

In Oslo, Equinor shares were trading at NOK 279.55, down 2.7 percent.