Goldman Sachs to offload USD-939m stake in Dong Energy
Feb 3 – Goldman Sachs Group Inc (NYSE:GS) has agreed to sell a 6.3% stake in Danish offshore wind-focused utility Dong Energy A/S (CPH:DENERG) for a total of DKK 6.49 billion (USD 939m/EUR 873m) reports Renewablesnow.com.
Luxembourg company New Energy Investment Sarl, which is controlled indirectly by Goldman’s merchant banking division, has informed Dong Energy that it will sell 26.5 million existing shares in the company to institutional investors at a price of DKK 245 apiece.
Following the transaction, NEI will hold some 29.44 million Dong Energy shares corresponding to a 7% stake. The company was Dong Energy’s second largest shareholder after its initial public offering (IPO) in Copenhagen last summer. At the time, NEI held an interest of 14.7% in Dong Energy, which is majority owned by the Kingdom of Denmark.
Initially, NEI planned to sell just 22.7 million shares but because of strong investor demand decided to increase the amount, according to a series of announcements by Dong Energy.
The Danish utility noted that it will not receive any proceeds from the transaction. Yesterday, the company reported a 119% jump in operating profit from continuing operations in 2016 and said it aims at 11 GW-12 GW of offshore wind capacity in 2025, after reaching 3.6 GW in 2016.
DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. We are headquartered in Denmark.