OSLO, NORWAY: Magnora, a Norwegian company that invests in renewable energy projects, announced on 18 January that it will separate its renewable business from its legacy business, which is based on contracts linked to its divested FPSO (floating production storage and offloading) technology business.

The separation will involve a demerger and a merger, followed by a spin-off of the legacy business to Magnora’s shareholders as a new listed company on the Oslo Stock Exchange. The legacy business consists of payments for licensing out patents and technology rights related to two FPSOs, one in operation and one soon to enter operation.

The decision to split the businesses comes after Magnora’s renewable business saw considerable growth in profits in 2023, making the rationale of keeping the legacy revenues in the same entity no longer valid. The company said the separation will allow it to focus on its core strategy of developing renewable energy projects.

The demerger and merger plans will be registered with the Norwegian Register of Business Enterprises today and will require an extraordinary general meeting of shareholders in mid-February 2024. The company will update the market with a schedule for the spin-off in due course.