SET-listed Gulf Energy Development has divested a 50% equity stake in the Borkum Riffgrund 2 offshore wind power project in Germany to the Keppel Group for around 11 billion baht.
Gulf International Holding Pte, a wholly owned subsidiary of Gulf, entered into a shareholders' agreement and share purchase agreement. Neptune1 is a joint venture company of Keppel Infrastructure Trust (KIT) and Keppel Renewable Investments, which is held by Keppel Corporation. Collectively, this represents the Keppel Group.
BKR2 Holding currently has a 50% equity stake in Borkum Riffgrund 2 Offshore Wind Farm GmbH (BKR2 Project) together with Ørsted A/S.
Following the divestment, Gulf International Holding will hold the remaining 49.9% stake in BKR2 Holding, which is equivalent to a 25% indirect equity stake in the BKR2 project.
The transaction is subject to customary closing conditions, in particular the receipt of required regulatory approvals, and is expected to complete in the fourth quarter of 2022.
Yupapin Wangviwat, chief financial officer at Gulf, explained that the divestment would not only strengthen the business relationship between Gulf and Keppel Group but also extend potential business collaborations or co-investments in projects that focus on energy transition and renewable energy, which is in line with her firm's business strategy and direction.
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 operation and maintenance agreement with Ørsted for a period of 20 years.
KIT is the largest diversified business trust listed on the Singapore 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 companies with a global footprint in more than 20 countries. Its portfolio consists of several affiliated businesses that specialise in energy, telecommunications, infrastructure, property, data centres, and the development of smart and sustainable cities.
