Norwegian Hafslund sells 7.01% of REC, to book EUR 16.7m loss in Q4

Dec 9, 2011 - Norwegian utility Hafslund ASA (OSL:HAFS) said today it has sold 7.01%, or 69.9 million shares, of Renewable Energy Corporation ASA (OSL:REC), or REC, and will book a loss of NOK 129 million (USD 22.3m/EUR 16.7m) from the deal in the fourth quarter of 2011.

Hafslund sold the shares in the Norwegian solar group at NOK 3.40 apiece.

Following the transaction, Hafslund owns 19.1 million shares in REC, of 1.92% of the company.

Yesterday after closing bell, the Oslo exchange issued a notice that Pareto Securities had been hired to explore the opportunity to sell between 40 million and 95 million shares, or 4-9.5% of the outstanding shares in REC for an undisclosed customer.

Hafslund's recent development has gone towards renewable energy within power production and heat as well as infrastructure for energy, while the group grows in power sales. The sale is a step in this strategy, the group said.

The utility has invested some NOK 2 billion in REC and has realised a cash gain of some NOK 4.06 billion including the latest transaction.

(NOK 1.0 = USD 0.173/EUR 0.129)

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