Germany: Dong Completes Borkum Riffgrund 1 Divestment

KIRKBI A/S and Oticon Foundation – the latter via its investment company, William Demant Invest A/S – signed an agreement to buy a 50 % stake in the 277,2 MW Borkum Riffgrund 1 offshore wind farm from DONG Energy for a total sum of DKK 4.7 billion.

Completion of the transaction was conditional on approval by the competition authorities. As the approval has now been granted, the parties have completed the transaction.

KIRKBI participated in the buying consortium with an investment of DKK 3 billion, giving it an ownership interest of 32 per cent. The Oticon Foundation invested DKK 1.7 billion, giving it an ownership interest of 18 per cent.

KIRKBI A/S and the Oticon Foundation will pay the purchase price in four instalments, starting at the end of 2012 and paying the last instalment at the end of 2015. The instalments make up 11, 12, 56 and 21 per cent of the purchase price.

[mappress]

Offshore WIND staff, May 28, 2012; Image: dong energy