Danish energy group Ørsted has agreed to sell its distribution and retail businesses to the Danish group SEAS-NVE. The transaction will involve DKK21.3bn (€2.85bn) and is expected to be completed before mid-2020. The trade includes Ørsted's Radius, which supplies electricity to 1 million homes and businesses in the Copenhagen area, North Zealand and parts of Central Zealand via an electricity network of approximately 19,000 km. It also includes Ørsted's private customers business (717,000 electricity customers and 105,000 gas customers) and outdoor lighting operation and maintenance business.
The sale is part of Ørsted's plan to raise funding for its capital expenditure plan for 2025 worth DKK200bn (€27bn). The transaction is subject to the approval of the competition authorities and the Danish Energy Agency, which is expected before the end of the first half of 2020.
SEAS-NV holds a 9.54% stake in Ørsted and plans to reduce its ownership interest to approximately 5% over the next 12 months.