Following a competitive divestment process, Danish multinational energy company Orsted has signed an exclusivity agreement with Cathay Life Insurance.
Orsted selected the Taiwanese insurance company and its affiliate as the preferred bidder for the acquisition of a 50% ownership stake in total of Orsted’s 583 MW Greater Changhua 4 Offshore Wind Farm in Taiwan.
Orsted and Cathay Life Insurance have agreed to an exclusivity period lasting until 17 January 2024, during which both parties will finalise negotiations of the transaction documents and confirmatory due diligence.
Under the Taiwan Stock Exchange disclosure rules, Cathay Life Insurance is required to make a public announcement upon being selected as the preferred bidder.
Subject to signing of the transaction, the completion of the divestment will be subject to regulatory approvals from the Taiwanese authorities.
In total, the Greater Changhua 2b and 4 offshore wind projects will have a capacity of 920 MW, Orsted took the final investment decision (FID) on these projects earlier this year.
A corporate power purchase agreement (CPPA) was signed with Taiwan Semiconductor Manufacturing Company (TSMC) in July 2020.
Orsted was awarded the 920 MW Greater Changhua 2b and 4 offshore wind farms in June 2018, the wind farms are under construction and expected to be completed by the end of 2025.