Equinor buys 9.8% stake in Orsted valued at $2.5 billion

By Reuters October 7, 2024
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A view of the turbines at Orsted’s offshore wind farm near Nysted, Denmark, September 4, 2023. REUTERS/Tom Little//File Photo

OSLO (Reuters) – Norway‘s Equinor said on Monday it has bought a 9.8% stake in Danish renewable energy group Orsted valued at around $2.5 billion, making it the second largest shareholder after the government of Denmark.

Orsted’s share price rose on the news, trading 2.8% higher at 1028 GMT, while Equinor’s shares fell by 2.3%.

Orsted did not immediately respond to a request for comment.

Equinor said it had a long-term perspective on the investment but did not plan to raise its stake beyond 10%.

“This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets,” Equinor CEO Anders Opedal said.

The logo of Equinor is set up at the entrance of a building at Western Europe’s largest liquefied natural gas plant Hammerfest LNG in Hammerfest, Norway, March 14, 2024. REUTERS/Lisi Niesner/File Photo

“The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development,” he added.

Equinor is supportive of Orsted’s strategy and management, and is not seeking board representation, the Norwegian group said.

Equinor’s ownership position was built over time, through a combination of market purchases and a block trade, it added.

 

(Reporting by Terje Solsvik in Oslo and Jacob Gronholt-Pedersen in Copenhagen, editing by Essi Lehto, Louise Rasmussen and Barbara Lewis)