Gulf sells 50% stake in German wind farm for 11 billion baht

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The wind farm started operations in April 2019 under a power purchase agreement and an operation and maintenance agreement with Ørsted for a period of 20 years.

SET-listed Gulf Energy Development has sold a 50% stake in the Borkum Riffgrund 2 offshore wind project in Germany to the Keppel Group for around 11 billion baht.

Gulf International Holding Pte, a wholly owned subsidiary of Gulf, has entered into a shareholders’ agreement and a stock purchase agreement. Neptune1 is a joint venture of Keppel Infrastructure Trust (KIT) and Keppel Renewable Investments, owned by Keppel Corporation. Collectively, this represents the Keppel Group.

BKR2 Holding currently holds a 50% stake in Borkum Riffgrund 2 Offshore Wind Farm GmbH (BKR2 project) together with Ørsted A/S.

Following the divestiture, Gulf International Holding will own the remaining 49.9% stake in BKR2 Holding, equivalent to an indirect 25% stake in the BKR2 project.

The transaction is subject to customary closing conditions, including obtaining required regulatory approvals, and is expected to close in the fourth quarter of 2022.

Yupapin Wangviwat, Chief Financial Officer of Gulf, explained that the divestiture will not only strengthen the business relationship between Gulf and Keppel Group, but also expand potential business collaborations or co-investments in energy transition and renewable energy projects, which is in line with the business strategy and direction of its business.

BKR2, located in the North Sea, is designed to have a capacity of 464.8 megawatts. The wind farm started operations in April 2019 under a power purchase agreement and an operation and maintenance agreement with Ørsted for a period of 20 years.

KIT is the largest diversified commercial trust listed on the Singapore Stock Exchange with a global portfolio of approximately S$4.7 billion in infrastructure businesses and assets under management as of June 30, 2022.

Keppel Corporation is one of Singapore’s flagship multinational corporations with a global presence in over 20 countries. Its portfolio consists of several affiliated companies specializing in energy, telecommunications, infrastructure, real estate, data centers and the development of smart and sustainable cities.

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