Dong signs for Goldman investment

Dong today signed a legally-binding investment agreement that will see Goldman Sachs and two Danish pension funds invest DKr11bn ($2bn) in the Danish utility, as expected.

All that remains is for the Danish Parliament’s Finance Committee to sign off the deal.

In early October Dong, the world’s leading offshore wind developer, announced the deal, which will see the Danish government’s stake shrink to 60% from 81%.

US investment bank Goldman Sachs will get a 19% stake for its DKr8bn investment, while Danish pension funds ATP and PFA will invest DKr2.2bn and DKr800m, respectively.

The deal values Dong at DKr31.5bn before the capital increase.

“The new equity entails that we can carry out our growth strategy, including our significant investment programme within offshore wind,” says Dong chairman Fritz Schur. “In this area, Dong is today a global market leader and our ambition is to become even stronger.”

The investment from Goldman Sachs – one of the world’s savviest if sometimes controversial investors – is seen as a critical vote of confidence in the European offshore wind market at a time when the sector faces a number of existential challenges.