Equinor ASA (EQNR.US) announced it will participate in wind power developer Orsted A/S's (DNNGY.US) new share issuance, becoming the first major investor to support the offering following the Danish government's commitment. The Norwegian energy giant stated it plans to maintain its 10% stake in Orsted A/S and will subscribe to new shares worth up to 6 billion Danish kroner (approximately $940 million).

Equinor ASA emphasized in a Monday statement that this move "demonstrates confidence in Orsted A/S's fundamental business and recognition of the competitiveness of offshore wind power in specific regions within the future energy mix."

Orsted A/S management is actively seeking investor support for its proposed 60 billion kroner ($9.4 billion) share issuance plan. Following the company's stock price falling to historical lows due to the US decision to suspend key wind power projects, executives urgently traveled to London and Frankfurt last week to meet with shareholders seeking support.

Securing endorsement from second-largest shareholder Equinor ASA is viewed as critical to success. With both Equinor ASA and the Danish government, which holds over 50% ownership, expressing support, Orsted A/S has now secured subscription commitments from at least 60% of shareholders.

Despite unprecedented uncertainty brought by the Trump administration's recent halt of the company's US offshore wind projects, major shareholder participation is expected to boost confidence among other shareholders for subscription.

Orsted A/S management will convene a special shareholder meeting on Friday to seek authorization for the share issuance. Key details including the prospectus and issue price will be announced in the coming days. Orsted A/S, which is 50.1% owned by the Danish government, hopes to complete the entire issuance process in early October.

Equinor ASA also announced Monday that it will nominate new directors to Orsted A/S's board before the next annual shareholders meeting. According to sources familiar with the matter, representatives from both companies held preliminary discussions last year regarding potential merger possibilities. While no substantial progress was made, Equinor ASA has consistently maintained its support for Orsted A/S.

Equinor ASA stated: "Facing challenges in the offshore wind industry, industry consolidation and new business models will emerge. We believe that deepening strategic industry cooperation between Orsted A/S and Equinor ASA can create greater value for shareholders of both companies."