E.On sells 80 Percent Share of Rödsand II Offshore Wind Farm to SEAS-NVE

E.ON, one of the world’s largest investor-owned power and gas companies, has today agreed to sell an 80 percent stake in its 207 megawatt Rödsand II offshore wind farm to the Danish energy company SEAS-NVE. The transaction values the wind farm at DKK 3.5 billion (c. €470 million) on a 100 percent enterprise basis.

At closing, a loan of DKK 2.1 billion (c. €280 million) will be taken out by the wind farm company and the proceeds remitted to E.ON. SEAS-NVE will then purchase 80 percent of the equity for DKK 1.1 billion (c. €150 million). As a result the total cash proceeds for E.ON will be DKK 3.2 billion (c. €430 million).

The deal is consistent with E.ON’s ‘less capital, more value’ strategic approach. E.ON will retain a 20 percent stake and will remain the operator for the remaining lifetime of the wind farm.

Situated in the Baltic Sea between the German island of Fehmarn and the Danish island of Lolland, Rödsand II offshore wind farm produces enough clean, renewable energy for around 200,000 homes. With the site, SEAS-NVE acquires a highly efficient project in a very attractive market environment.

Commenting on the deal, Klaus Schäfer, E.ON’s Chief Financial Officer said: “Following on from last year’s deal with PensionDenmark, we are once again delivering on our strategy of ‘more value, less capital’. For E.ON, the sale of a majority stake in one of our largest offshore wind farms will successfully recycle our capital, ensuring we are able to realize more of our excellent renewables pipeline. We are pleased to have entered into an agreement with SEAS-NVE, Denmark’s largest consumer-owned energy company, who have now gained a share of a world-class renewable asset situated in its supply area.”

Jesper Hjulmand, CEO of SEAS-NVE, commented: “This is an historic deal for SEAS-NVE. The Rödsand II wind farm is a very visible asset and a clear message about our role in the Danish transition towards sustainable energy. The deal is also a great business opportunity which will contribute to both revenue and results in the years ahead. Together with E.ON, we will treasure the Rödsand II asset with mutual benefits.”

The final transaction is subject to regulatory approval from the Danish Energy Agency and EU merger control clearance. The deal is expected to close around the end of the year.

Facts about Rödsand 2 Offshore Wind Farm

Located: Baltic Sea, off the coast of Nysted, Denmark
Capacity: 207 megawatt
Start of operation: August 2010
Turbines: 90 x Siemens, 2.3 megawatt units

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.

Source: E.On

For more information on: E.On