E.ON SE (EOAN.XE) said Wednesday it has agreed to sell a majority stake in an offshore wind farm in Denmark as the German utility seeks to conserve cash and free up funds for reinvestment in new "green" energy projects.

E.ON said it will sell an 80% stake in the 207-megawatt wind farm Rodsand II in the Baltic Sea to Danish energy company SEAS-NVE, in a transaction that values the asset at around 470 million euros ($630 million).

Total cash proceeds for E.ON are expected to amount to some EUR430 million, the company said, adding that it will likely record a book gain of around EUR100 million. E.ON will retain 20% stake in the wind power plant and will remain its operator.

The transaction is in line with E.ON's strategy to involve partners in its existing renewable energies projects to raise funds for reinvestment in new projects.

Like many other European utilities, low power prices have slammed profits and cash flows at E.ON's conventional gas-and coal-fired power plants, reflecting a capacity glut that is related to the continued expansion of renewable energies.

"For E.ON, the sale of a majority stake in one of our largest offshore wind farms will successfully recycle our capital, ensuring we are able to realize more of our excellent renewables pipeline," said Chief Financial Officer Klaus Schaefer.
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