GULF divested 50% equity stake of BKR2 offshore wind power project to Keppel Group

GULF divested 50% equity stake of BKR2 offshore wind power project to Keppel Group

GULF divested 50% equity stake in Borkum Riffgrund 2 offshore wind power project in Germany to the Keppel Group at the price of EUR 305 million, or approximately THB 11 billion. The divestment will further strengthen the business relationship, collaboration, and synergies between GULF and Keppel Group.

Gulf Energy Development Plc. (GULF) divested 50% equity stake in Borkum Riffgrund 2 Investor Holding GmbH (BKR2 Holding) to Neptune1 Infrastructure Holdings Pte. Ltd. the price of EUR 305 million. Gulf International Holding Pte. Ltd. (GIH), 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 ultimately held by Keppel Corporation Limited (Keppel Corporation) (collectively, Keppel Group).

Currently, BKR2 Holding currently holds 50% equity stake in Borkum Riffgrund 2 Offshore Wind Farm GmbH & Co. oHG (BKR2 Project) together with Ørsted A/S. Following the divestment, GIH will hold the remaining 49.99% stake in BKR2 Holding, or equivalent to a 25% indirect equity stake in 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.

The BKR2 Project is an offshore wind farm project with an installed capacity of 464.8 megawatts (export capacity of 450.0 megawatts) located in the German North Sea, northwest of Germany. The BKR2 Project has commenced commercial operation since April 2019 and has a Power Purchase Agreement (PPA) and an Operation & Maintenance Agreement (O&M Agreement) with Ørsted for a period of 20 years from the start of operations. Moreover, the BKR2 Project receives a guaranteed Feed-in-Tariff (FiT) backed by the German government for years 1-9.5 after commencement of commercial operations and will receive merchant price with guaranteed floor price for years 9.5-20, resulting in the long-term revenue stability of the project.

KIT is the largest diversified business trust listed on the Singapore Exchange with a global portfolio of approximately SGD 4.7 billion in infrastructure businesses and assets under management as at 30 June 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 specialize in energy, telecommunications, infrastructure, property, data centers and smart & sustainable cities development.

Ms. Yupapin Wangviwat, Chief Financial Officer, GULF, stated, “This divestment will not only strengthen the business relationship between GULF and Keppel Group but also extend potential business collaborations or co-investment in projects that focus on energy transition and renewable energy, which is in line with our business strategy and direction.”