DKK 11 Bln to Strengthen DONG Energy’s Offshore Wind Business

DONG Energy announced today that DKK 11 billion (over USD 2 billion) will be invested in the company, which will especially strengthen its role in the offshore wind industry.

The Danish State represented by the Ministry of Finance, DONG Energy A/S, the Danish pension fund Arbejdsmarkedets Tillægspension (ATP), funds managed by the Merchant Banking Division of Goldman Sachs through New Energy Investment S.a.r.l (Goldman Sachs funds) and the Danish Pension fund PFA Pension Forsikringsaktieselskab (PFA) have today signed a legally binding investment agreement setting forth the terms and conditions for ATP’s, Goldman Sachs funds’ and PFA’s investment of a total of DKK 11 billion in DONG Energy A/S by subscription of new shares.

ATP will subscribe for new shares for DKK 2.2 billion, Goldman Sachs funds for DKK 8 billion and PFA for DKK 0.8 billion. The subscription of new shares will be based on a valuation of DONG Energy A/S of DKK 31.5 billion prior to the capital increase. The final closing of the transaction is for the Danish State conditional on approval by the Finance Committee of the Danish Parliament.

Fritz Schur, Chairman of the Board of DONG Energy A/S, says: “We look forward to welcoming ATP, Goldman Sachs funds and PFA to DONG Energy’s ownership group. The new equity entails that we can carry out our growth strategy, including our significant investment programme within offshore wind. In this area, DONG Energy is today a global market leader and our ambition is to become even stronger. With this agreement, we will therefore be better equipped to create value for our owners, including our current shareholders where the Danish state is the majority shareholder. At the same time, we can continue our ambitious work on converting the energy supply to more green and climate-friendly energy sources.”

Completion of the transaction is scheduled to take place at an extraordinary general meeting, which is expected to be held in February 2014.

(USD 1= DKK 5.48)

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Press release, November 29, 2013; Image: DONG Energy