Octopus Renewables Infrastructure Trust (ORIT) said that its investee company Simply Blue Holdings has agreed to sell an 80 per cent stake in its offshore wind development unit to Kansai Electric Power, marking a significant step in reshaping the group’s portfolio.

Kansai will acquire the controlling interest in Simply Blue Energy OSW, the group’s dedicated offshore wind arm, under a share subscription agreement announced on Monday. The deal comes shortly after Simply Blue carved out its sustainable fuels division into a newly created business, Nova Scotia Fuels, as part of a wider effort to streamline operations and unlock value from its platform.

ORIT said the transaction terms were consistent with its most recent valuation of Simply Blue. Proceeds will be used in part to repay a shareholder loan provided by the trust, with ORIT retaining exposure to the business through its minority stake in the parent company.

Chris Gaydon, co-fund manager of ORIT, described the deal as “a solid outcome in what remains a challenging market for offshore wind developers”, adding that the move underscored confidence in Simply Blue’s management and the strategic fit with Kansai as a long-term partner.

Below is an interview with ORIT fund managers David Bird and Chris Gaydon, filmed at the recent half year results