Eversource Divests Stake In JV Land For $625M

Eversource Energy ES plans to sell a 50% stake in a currently uncommitted lease area of approximately 175,000 developable acres to Ørsted for $625 million in an all-cash transaction.
The land, located 25 miles off the south coast of Massachusetts. Ørsted currently owns the other 50 percent share of the joint venture land, including the uncommitted lease area.
This transaction will close by the end of the third quarter of 2023.
"We have had the pleasure of working alongside Ørsted for more than six years and have experienced firsthand their expertise and global leadership in the offshore wind sector," said Joe Nolan, Eversource's president, CEO, and chairman.
Eversouce has entered into a binding letter of intent with Ørsted to use a portion of the proceeds from the lease area sale to provide tax equity for the South Fork Wind project.
Eversource's tax equity investment in South Fork Wind will close in the third quarter.
The company is also planning to advance the sale of its existing 50% interest in its three jointly owned contracted offshore wind projects (South Fork Wind, Revolution Wind, and Sunrise Wind).
With the above divestment plans, the company is pursuing an exit from the unregulated offshore wind business.
Proceeds from the transaction will be used to pay off the parent company's debt.
Price Action: ES shares are trading lower by 0.10% to $70.79 in the premarket session on the last check Friday.
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