Dong energy sells stake in offshore wind farm

Dong Energy, Denmark’s largest integrated energy company, sold half of its 50% stake in the London Array offshore wind project. The sale reduces Dong Energy’s stake in the 630 megawatt wind farm to 25% and shifts majority ownership to Eon, which holds 30% stake.

Canadian public pension fund manager, La Caisse, picked up the 25% stake for $868 million. The sale took place one day after an international consortium led by Goldman Sachs secured government approval to purchase an 18% stake in Dong for $1.5 billion.

The Goldman deal was widely opposed in Denmark and triggered a political crisis for the Prime Minister Helle Thorning-Schmidt’s coalition. Bloomberg reported:

As night turned to day on Jan. 30, Denmark’s biggest newspapers were predicting Prime Minister Helle Thorning-Schmidt’s coalition would survive a dispute over letting Goldman Sachs Group Inc. (GS) buy part of Dong Energy . . . The 48-year-old Social Democrat watched her coalition fall apart yesterday after pushing a $1.5 billion sale of an 18 percent stake in Dong to Goldman. The deal, opposed by 68 percent of Danish voters in a Megafon poll for TV2, dominated headlines after it emerged Goldman would get some veto powers in exchange for its investment. Goldman has said it views the stake as a long-term holding and will support the strategy of the current management.

It is unclear whether the timing of Dong Energy’s divestment in the London Array project, which was originally proposed in February 2013 as part of broader restructuring, was influenced by the Goldman controversy. Dong Energy will remain the service provider for operations and maintenance services to London Array.

http://www.forbes.com/sites/williampentland/2014/01/31/dong-energy-sells-stake-in-offshore-wind-farm/?ss=business%3Aenergy