Burbo Bank, Liverpool Bay, England, viewed from the sea turbines on Burbo wind farm off the U.K. coast.
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Orsted shares crashed more than 25% on Monday morning, after the wind farm developer said it plans a 60 billion Danish kroner ($9.4 billion) rights issue, following a “material adverse development” in the U.S. market.
The company said this turn of events left it unable to raise funds from a planned partial divestment of its Sunrise Wind project off the coast of New York.
Given the market conditions, Orsted’s board of directors decided to end the process of selling a stake in Sunrise Wind, which would have provided the “required strengthening” of its capital structure to support its investment and business development programs.
Orsted — the world’s largest offshore wind developer — will be offering existing shareholders first refusal on the new shares under the planned move, which is being backed by the Danish State, the company’s largest shareholder.
Shares were 26.8% lower by 9:09 a.m. in London (4:09 a.m. ET).
This breaking news story is being updated.