\u00d8rsted has agreed to sell a 50% equity stake in its 2.9GW Hornsea 3 offshore wind farm in the UK to funds managed by Apollo Global Management (Apollo Funds).<\/p>\n
The deal, valued at approximately DKr39bn ($6.5bn), will see Apollo acquire 50% of the project and commit to funding for the remaining construction costs.<\/p>\n
Under the agreement, Apollo will pay around DKr20bn upon closing, and the remaining consideration as the project achieves specific construction milestones.<\/p>\n
This initial payment includes DKr10bn for share purchase, covering both generation and transmission assets, and DKr10bn for construction costs.<\/p>\n
The transaction is expected to close before the end of 2025, subject to standard regulatory approvals.<\/p>\n
\u00d8rsted said the deal aligns with its capital management strategy.<\/p>\n
\u00d8rsted Group CFO Trond Westlie said: \u201cWe\u2019re pleased to welcome Apollo as a partner for Hornsea 3, as they bring infrastructure expertise and scaled capital.<\/p>\n
\u201cWe look forward to working with them to deliver this important project that will produce enough electricity to power more than three million UK homes once completed and contribute to the renewable transformation of the UK.<\/p>\n
\u201cThe divestment represents an important milestone for \u00d8rsted as we continue to deliver on our partnership and divestment programme, which is a cornerstone of our business plan.\u201d<\/p>\n
Located 160km off the Yorkshire coast, Hornsea 3 is being constructed in \u00d8rsted\u2019s Hornsea zone, alongside the Hornsea 1 and 2 projects.<\/p>\n
Once operational, the Hornsea 3 wind farm will increase the total installed capacity of the wider Hornsea zone to more than 5GW.<\/p>\n
\u00d8rsted will continue to build Hornsea 3 under a full-scope engineering, procurement, and construction contract and will provide long-term operations and maintenance services from its East Coast hub.<\/p>\n
The company will also deliver balancing services and a long-term route to market for the electricity generated by the wind farm.<\/p>\n
Apollo said the senior financing for the transaction will be led by Apollo-managed entities, with bank facilities underwritten by BNP Paribas, ING Bank, Lloyds, and RBC Capital Markets.<\/p>\n
Co-investors La Caisse and PSP Investments have also committed to the transaction through equity and debt financing.<\/p>\n
Linklaters served as legal advisor and RBC Capital Markets as financial advisor to Apollo Funds while Paul, Weiss, Rifkind, Wharton & Garrison represented the lenders in the transaction.<\/p>\n
Apollo infrastructure partner Adam Petrie said: \u201c\u00d8rsted is a global leader in offshore wind power and Hornsea 3 is its most significant project yet, with capacity to bring reliable, renewable energy to millions of homes across the UK.<\/p>\n
\u201cThrough this investment, we are proud to deliver a scaled and comprehensive solution for infrastructure that will promote energy security and the UK\u2019s net-zero ambitions.\u201d<\/p>\n
Earlier this year, \u00d8rsted discontinued<\/a> the Hornsea 4 offshore wind project due to reported increasing supply chain costs, rising interest rates, and construction risks.<\/p>\n