Orkla has entered into agreements to sell its entire hydro power portfolio in
two separate transactions. The transactions value the portfolio at NOK 6.1
billion on a cash and debt-free basis.
The hydro power portfolio is held through 100% ownership of three separate
holding companies: Sarpsfoss Limited, Orkla Energi AS (85% owner of AS
Saudefaldene), and Trælandsfos Holding AS.
Hafslund AS (90%) and Svartisen Holding AS (10%) acquire Sarpsfoss Limited. The
underlying assets consist of run-of-the-river hydro power production in
Sarpefossen and Mossefossen, with a combined average annual production of 536
GWh.
Å Energi acquires Orkla Energi AS and Trælandsfos Holding AS. The Saudefaldene
assets are leased until the end of 2030, when Statkraft assumes ownership in
exchange for a regulated compensation. The assets have an average annual
production of 1,860 GWh, of which 1,072 GWh are subject to fixed delivery
commitments. The Trælandsfos assets have an average annual production of 61 GWh.
At the Capital Markets Day in November 2023, Orkla communicated that the company
was exploring opportunities to best create value from the hydro power assets,
including a potential sales process.
"Orkla is an industrial investment company with a brands and consumer-oriented
scope. By selling the hydro power portfolio, we reduce complexity and deliver on
our communicated strategy," says Orkla's President and CEO Nils K. Selte.
Orkla's estimated accounting gain from these transactions is approximately NOK 5
billion.
The transactions are subject to approval by the relevant competition authorities
and the Norwegian Ministry of Energy. The transactions are expected to close by
the end of the third quarter of 2025.
In connection with the transaction, DNB Markets, a part of DNB Bank ASA, acted
as financial adviser and Wiersholm law firm as legal adviser to Orkla.
About Hafslund AS
Hafslund is an energy and infrastructure group consisting of three business
areas, all working towards a world in balance with renewable energy. Hafslund
owns and operates 81 hydro power plants, amounting to 21 TWh, from four power
production areas: Aurland, Hallingdal and Valdres, Innlandet and Glomma.
Hafslund AS is 100% owned by the Oslo municipality.
About Svartisen Holding AS
Svartisen Holding is a Norwegian entity owned by three Finnish utilities