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Goldman Sachs to invest $1.5 billion in Dong energy

Overall investment likely to safeguard the future of one of the world’s biggest operators of wind farms

(Pic: Dong Energy)

Goldman Sachs, pension funds investor ATP and PFA Pension has committed to an investment of DKK 11 billion (over $2 billion) in Dong Energy.

The investment is likely to safeguard the future of one of the world’s biggest operators of wind farms, which is one of a number of European utilities struggling with high debt, weak power demand and the low profitability of the gas-fired power plants it also runs.

Dong made history this year by inaugurating Denmark’s largest offshore wind farm in September providing energy to 400,000 Danish households.

In July, it was central to developing the world’s largest offshore windfarm off the Kent coast, UK. Alongside E.ON and Masdar, Dong Energy provided the first £1.8 billion of funding.

The final agreement, expected to be concluded before the end of the year, between the Danish Ministry of Finance and DONG Energy with third party funds from Goldman Sachs’ merchant banking division, the Danish pension funds Arbejdsmarkedets Tillægspension (ATP) and PFA Pension Forsikringsaktieselskab (PFA).

Henrik Heideby, PFA’s President and Group CEO, said: “We are excited to invest in long term energy production and infrastructure assets through this partnership with DONG Energy.

“The company is undergoing a positive development under a highly competent management team and with its strong position in its markets we see attractive growth opportunities. We believe this is a great opportunity to generate an attractive long term return for the benefit of PFA’s customers. The contribution to Denmark’s green energy transformation is an added bonus”.

A spokeswoman for Goldman Sachs refused to comment on whether its investment would be directed towards renewables or fossil fuels.

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  • Heike Arndt

    ..its not 141.000 danes protest aigainst it right now!!!

    • hmtcph

      More likely to hit 200.000 protesters within the next day. The investment has caused a lot of trouble for the government in place as they want advocate for sustainability and social responsibility, but in general GMS is seen as the opposite in DK – as a non-ethical profit-chasing company, underlined by the fact that the ownerstructure is constructed in such a way, that no taxes will be paid in DK but are transferred to a Cayman Island like adress.

      Furthermore GSM has also negotiated a buy back option on terms that are extremely favourable to GSM. Though there is a lot of public resistance to the sale, it does however seem that the sale will go through as there is a referendum in the parlament tomorrow – Thursday, and it seems that a majority of the members will vote pro the sale.

      • Heike Arndt

        …unfortunally…..its defently not supportet by the danish public where all polls prove that the public is against Goldman Sachs as a partner and there is no doubt that there will be some digging done by the press how come that a financeminister feels more clever than Goldman Sachs – there history from other countries has shown different……..unfortunally its the taxpayer in the end paying the bill….. maybe one good thing comes out of this mess that the public startes to get a wake up call to look more closly who they vote for in the future……