Renewable

October 29 (Renewables Now) - Danish turbine maker Vestas Wind Systems A/S (CPH:VWS) said Thursday it has agreed to buy the entire stake held by Japan’s Mitsubishi Heavy Industries Ltd (TYO:7011) in their 50/50 offshore wind joint venture (JV) for around EUR 709 million (USD 831.7m).

In exchange, Vestas will issue roughly 5.05 million shares to Mitsubishi. The latter, through MHI Holding Denmark ApS, will hold a 2.5% stake in Vestas and get a seat on the Danish company’s board.

Vestas said it plans to start work on the incorporation of MHI Vestas Offshore Wind A/S into its group immediately and launch a new offshore wind turbine platform. The companies have also agreed to form a JV in Japan for the sale of onshore and offshore turbines.

MHI Vestas is expected to report a consolidated revenue of around EUR 1.4 billion and an EBIT margin of about 4% for 2020, according to the press release.

“Vestas is the leader in onshore wind, but to accelerate the energy transition and achieve our vision we must play a larger role in offshore wind,” said CEO Henrik Andersen.

The parties expect to close the transaction in the fourth quarter of 2020 or the first quarter of 2021.

In a separate announcement, MHI Vestas said that Johnny Thomsen has been appointed CEO of the company, succeeding Philippe Kavafyan, who has stepped down after two and a half years at the helm.

(EUR 1.0 = USD 1.173)

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