Goldman Sachs invests in Dong Energy

Goldman Sachs and two Danish pension funds have invested a total of DKK 11 billion (£1.24 billion) in Dong Energy.

Funds managed by Goldman Sachs bought DKK8 billion-worth of shares, taking its stake up to 19 per cent, while the two pension funds, ATP and PFA, will have a joint stake of 7 per cent.

The investment means that the Danish government’s share in Dong Energy, which has a 50 per cent stake in the London Array offshore windfarm, fell from 80 per cent to 60 per cent.

Henrik Poulsen, Dong Energy’s chief executive, 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.

“I regard the interest displayed by these three well renowned private investors as a vote of confidence in the company’s potential, our strong market positions and our highly competent employees.”

Credit rating agency Moody’s reported that the investment in Dong as credit positive because “the capital increase will reduce year-end net debt and fund a significant proportion of Dong Energy’s planned exploration and production and offshore wind investments, which would have otherwise been funded by new debt”.

The investment is expected to decrease Dong Energy’s net debt from DKK41.7 billion as reported in June 2013, down to about DKK30 billion.