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Enel, SEAS-NVE planning to acquire Orsted’s Danish power grid: Reuters
Posted on Friday, 11 January 2019 14:28
Orsted has been exploring options for its Danish power distribution and residential customer businesses since June last year and several sources close to the matter have now told Reuters that at least four bidders are taking part in an auction for the assets.

The potential target could be worth around EUR 2.50 billion, according to the banking insiders cited by the news provider.

Among those named by the people with knowledge of the situation was Italian energy group Enel, which has made it into the second-round of bidding and is hoping it will diversify its operations from Latin America and Southern Europe, should it prevail in the auction.

One source noted that a consortium of Allianz and E.ON took part in the first tranche of offers but was now out of the running.

However, the latter could still be interested in pursuing an acquisition, while the former has officially bowed out, a single insider said.

Furthermore, Reuters reported that Danish utility SEAS-NVE, Denmark-based pension fund ATP and a consortium of Canada’s OMERS, Denmark’s PKA and Caisse de dépôt et placement du Québec, have also entered the second-round of bidding.

Orsted, a developer, constructor and operator of offshore wind farms, bioenergy plants and waste-to-energy services, agreed to launch a strategic divestment process for its power distribution and residential customer businesses in June last year.

At the time, the company said it was focused on expanding its leading position in new and existing markets and invests between DKK 15.00 billion to DKK 20.00 billion (EUR 2.01 billion and EUR 2.68 billion) annually, over 80.0 per cent of which is in offshore wind.

The power distribution and residential customer businesses have a high-level of customer satisfaction but are not sales channels that support Orsted’s long-term international growth renewables.

Operating under the Radius subsidiary, the residential customer unit has one million electricity clients in the Copenhagen area ensured by a 19,000km grid.

Orsted’s residential business sells electricity to over 733,000 clients and gas to 91,000 people across Denmark.

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