LogIn LogOut

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

Jadestone Shutting Down Montara FPSO Output to Fix Tank Issues

Jadestone Shutting Down Montara FPSO Output to Fix Tank Issues

ADNOC L&S Wins $1.17B Contract for 13 Jack-up Barges

ADNOC L&S Wins $1.17B Contract for 13 Jack-up Barges

Uniper Looking to Swap Australian LNG for Atlantic Gas to Supply Europe Quicker

Uniper Looking to Swap Australian LNG for Atlantic Gas to Supply Europe Quicker

Indonesians Must Prepare for a Potential Fuel Price Hike, Minister Says

Indonesians Must Prepare for a Potential Fuel Price Hike, Minister Says

Australian States Press for Gas Exporters to Boost Local Supply

Australian States Press for Gas Exporters to Boost Local Supply

Danish Firm Wants to Build 3GW Offshore Wind Farm in Australia

Danish Firm Wants to Build 3GW Offshore Wind Farm in Australia

Sembcorp Marine Cuts Losses as Easing COVID Curbs Aid Project Deliveries

Sembcorp Marine Cuts Losses as Easing COVID Curbs Aid Project Deliveries
photo

Subscribe for AOG Digital E‑News

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

https://accounts.newwavemedia.com