Investment banker Goldman Sachs Group and two Danish pension funds Arbejdsmarkedets Tillægspension (ATP) and PFA Pension Forsikringsaktieselskab (PFA) will acquire a combined 26 per cent stake in Denmark-based Dong Energy for $2bn.
Goldman will pay $1.46bn for 19 per cent stake in the state-controlled Danish energy group, while pension funds ATP and PFA will acquire 5 and 2 per cent stakes respectively.
Henrik Poulsen, CEO of Dong Energy, said: “With the injection of new equity, we have almost fully delivered on our financial action plan and have thus secured the necessary platform for pursuing our ambitions for the coming years.”
With this investment, the Danish government’s stake in Dong Energy will reduce from 81 to 60 per cent.
The final agreement is expected to be concluded by end of this year.
Andrew Wolff, head of merchant banking division for EMEA and co-head of Asia at Goldman Sachs, said: “We are excited to work with the company and the Danish State to help grow the business and provide environmentally friendly energy and infrastructure for European markets.”
The three private investors and the Danish government have agreed to seek an initial public offering (IPO) for Dong Energy.
In the event of non-completion of an IPO before the release of Dong’s 2017 financial results, the investors will have an option to dispose of their shares back to the Danish government at a pre-agreed price.