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Goldman Sachs to sell $385m stake in Dong Energy

CTBR Staff Writer Published 01 September 2017

Goldman Sachs-controlled New Energy Investment (NEI) has decided to sell 7.5 million shares in Danish energy giant Dong Energy for DKK2.4bn ($385m).

The stake equals to 1.78% of Dong’s issued capital and it is being sold at price of DKK321 ($51.34) per share.

Following the sale of stake, New Energy Investment will own 11.43 million shares or 2.7% stake in the company. The stake will be sold to institutional investors. 

NEI is a Luxembourg-based company indirectly owned by entities under the control of the merchant banking division of Goldman Sachs.

Dong Energy stated that it will not receive any proceeds from the transaction.

In June 2016, Dong Energy, which is majority-owned by the Danish state, got listed following an initial public offering (IPO). The public issue valued the company at around $15 billion.New Energy Investment held a 13.4% stake in the company at the time of its listing.

Other major shareholders in Dong Energy include ATP Pension Fund, PFA Pension and Danish energy company SEAS-NVE, which was a merger between Sydsjællands Elektricitets Aktieselskab and Andelsselskabet Nordvestsjællands Elektricitetsværk.

In May this year, Dong Energy stated that it will entirely phase out coal from its energy mix by 2023 and has also agreed to sell its upstream oil and gas business to Ineos for DKK7bn ($1.05bn).

The company has won a bid to construct three wind projects in an auction conducted by Germany’s Federal Network Agency, Bundesnetzagentur in April 2017. 

Dong Energy will construct the wind farms in the German North Sea including the 240 MW OWP West, the 240 MW Borkum Riffgrund West 2, and the 110 MW Gode Wind 3.

Commissioning of the three projects is expected to take place by 2024 and they are subject to final investment decision by Dong Energy in 2021.

Image: Goldman Sachs subsidiary to sell stake in Dong Energy. Photo: Courtesy of DONG Energy A/S.