Orsted Loses Political Support for Divestment

January 14, 2019

(Photo: Orsted)
(Photo: Orsted)

Shares in Orsted fell on Monday after the energy company, which is 50.1 percent owned be the Danish state, on Sunday announced that there was no longer political support for the divestment of its power business.

The world's largest offshore wind farm developer had put its Danish power distribution and residential customer businesses up for sale in June to focus on developing its international renewable energy operations.

But as Denmark's Social Democrats, the main opposition party, on Sunday said it no longer supported the sale because it wanted democratic control over critical infrastructure, there was no longer a political majority in favor of the sale.

Orsted shares opened 4.8 percent lower on Monday.

"This reminds investors that the company has a major shareholder that may have other interests than just maximizing profit ...the price that Orsted could have received for the unit seemed to be really good," analyst Morten Imsgard of Sydbank told Reuters.

Enel and SEAS-NVE were among at least four bidders for the unit which was seen to be worth about 2.5 billion euros ($2.87 billion), Reuters reported on Friday.


($1 = 0.8714 euros)

(Reporting by Teis Jensen; editing by Jason Neely)



Current News

JFO Aids NPCC Decom Work

JFO Aids NPCC Decom Work

BMT Delivers Real Time Monitoring for Helang FPSO

BMT Delivers Real Time Monitoring for Helang FPSO

Equinor Cleared to Cut Troll Gas Quota

Equinor Cleared to Cut Troll Gas Quota

Woodside to Build Interconnector Pipeline

Woodside to Build Interconnector Pipeline

Australia Extends Review of Equinor Drilling Plan

Australia Extends Review of Equinor Drilling Plan

New Offshore/Subsea Lever Hoist Launched

New Offshore/Subsea Lever Hoist Launched

Halliburton Introduces PixStar

Halliburton Introduces PixStar

Magazine

Offshore Engineer (Sep/Oct 2019)

This issue of Offshore Engineer is dedicated to Big Data and Digitalization

Archive
Subscribe

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week