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COPENHAGEN - Danish renewable energy company Ørsted A/S (CPSE:ORSTED) announced Monday plans for a DKK 60 billion ($8.8 billion) rights issue after abandoning efforts to partially divest its Sunrise Wind offshore project in the United States.
The company cited "material adverse development in the US offshore wind market" as the reason for discontinuing the divestment process, which was intended to strengthen its capital structure. The Danish state, which holds a 50.1% stake in Ørsted, has committed to subscribe for its pro rata share of the rights issue.
The capital raise will provide financial flexibility during 2025-2027 as Ørsted delivers its 8.1 GW offshore wind construction portfolio. The proceeds will cover approximately DKK 40 billion in incremental funding requirements from retaining full ownership of Sunrise Wind, while also strengthening the company’s capital structure.
"Given the unprecedented regulatory development in the US, we have made a comprehensive assessment of all options, and Ørsted’s Board of Directors has concluded that the planned rights issue is the best path forward," said Lene Skole, Chair of Ørsted’s Board of Directors, according to the press release.
Ørsted is continuing with previously announced farm-down processes for its Changhua 2 and Hornsea 3 offshore wind farms and has launched a sales process for its European onshore business. The company expects to raise more than DKK 35 billion from divestments during 2025-2026.
The company updated its medium-term financial targets, projecting EBITDA exceeding DKK 28 billion in 2026 and DKK 32 billion in 2027, excluding new partnerships and cancellation fees. Ørsted plans approximately DKK 145 billion in investments for 2025-2027 related to its current construction projects.
An extraordinary general meeting is scheduled for September 5, 2025, to seek shareholder approval for the rights issue, which is fully underwritten by Morgan Stanley & Co (NYSE:MS). International plc.
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