Norwegian conglomerate Orkla has agreed to sell its hydropower portfolio in two transactions.
Orkla added that the portfolio is valued at NOK 6.1 billion (€520 million) on a debt-free and cash basis.
Three holding companies own its hydropower portfolio: Sarpsfoss Limited, Orkla Energi AS – the 85% owner of AS Saudefaldene – and Trælandsfos Holding AS.
“Orkla is an industrial investment company with a brands- and consumer-oriented scope. By selling the hydropower portfolio, we reduce complexity and deliver on our communicated strategy,” commented the president and CEO of Orkla, Nils K. Selte.
Orkla expects an accounting gain of approximately NOK 5 billion (€430 million) from these transactions.
The transactions, expected to close by the end of the third quarter of 2025, are subject to approval by the relevant competition authorities and the Norwegian Ministry of Energy.
Divestiture Details
As part of the agreement, Hafslund AS and Svartisen Holding AS will acquire 90% and 10% of Sarpsfoss Limited, respectively.
The underlying assets consist of run-of-the-river hydropower production in Sarpefossen and Mossefossen, with a combined average annual output of 536 GWh.
Å Energi is to acquire Orkla Energi AS and Trælandsfos Holding AS.
The Saudefaldene assets are leased until the end of 2030, when Statkraft will assume ownership in exchange for regulated compensation.
The assets have an average annual production of 1,860 GWh, of which 1,072 GWh is subject to fixed delivery commitments.
The Trælandsfos assets have an average annual production of 61 GWh, Orkla noted.
DNB Markets, a part of DNB Bank ASA, acted as financial adviser, and the Wiersholm law firm as legal adviser to Orkla, for the transactions.
Orkla reported growth in profitability in the third quarter, with adjusted earnings before interest and taxes (EBIT) up by 13%, year on year, to NOK 2.1 billion (€180 million).
