China Resources, Aviva Weigh Bids for Wind Farms in U.K

Published Date : Aug 16, 2017

China Resources Power Holdings Co. and Aviva Plc are among the group of companies that are considering to bid for stakes of Statkraft AS in its offshore farms in U.K. According to the people associated with this event, it is expected to create a great surge in interest for green energy assets across Europe.

Copenhagen Infrastructure Partners K/S and Macquarie Group Ltd. are also considering offers according to the associated people who refused to reveal their identities as the deliberations are confidential.  Statkraft is planning to sell its assets for around US$1 billion to US$1.5 billion according to one of the people associated with the matter. However, the potential buyers are only willing to pay somewhere between US$750 million to US$1 billion for the two shares.

No closing decisions have been taken, and the interested parties could yet opt against making a bid. A Statkraft spokesperson said that there would be no comment by the company on the ongoing procedure. Though, the spokesperson did say that the company hopes to conclude the sale somewhere around the New Year’s period. A Macquarie representative refused to comment, while representatives of China Resources Power, CIP, and Aviva did not immediately reply to the comment requests.

Statkraft is the state-owned energy enterprise of Norway and is selling 40% of its stake in the Sheringham Shoal wind farm and 30% of holdings in the Dudgeon plan. In 2015 the company decided to stop new investments in overseas wind power, which it considered extremely capital intensive. In July, the company CEO Irene Egset said that a process has begun to divest the wind assets of the company.