Taiwanese insurer Cathay Life Insurance has secured the status of preferred bidder for the acquisition of a 50% stake in the 583-MW Greater Changhua 4 offshore wind project off the coast of Taiwan from Danish energy major Ørsted A/S (CPH:ORSTED).
Ørsted said on Tuesday that the selection of Cathay Life Insurance and its affiliate followed a competitive divestment process, which culminated in an exclusivity agreement between the Danish group and the insurer.
The exclusivity period is set to last until January 17, 2024. In the meantime, the parties will finalise negotiations and conduct confirmatory due diligence.
Subject to signing of the transaction, the completion of the divestment will hinge on regulatory approvals from the Taiwanese authorities, Ørsted said.
The Greater Changhua 4 project is part of the planned 920-MW Greater Changhua 2b and 4 offshore wind farm complex. Ørsted took the final investment decision on the pair earlier this year and moved on to the construction. The company said that it expects to finalise construction by the end of 2025.
