DONG Energy Divests 50% Stake In German Offshore Wind Farm
Danish wind energy giant DONG Energy has divested 50% of the 330 MW German Gode Wind 1 offshore wind construction project to Global Infrastructure Partners.
DONG Energy announced Thursday that it had signed an agreement to divest 50% of the 330 MW German offshore wind construction project Gode Wind 1 to Global Infrastructure Partners (GIP), a leading global and independent private equity infrastructure investment fund.
The agreement calls for GIP to pay approximately €780 million ($879 million), as well as issue a rated project bond to a consortium of German insurance companies. The transaction is expected to be completed in the second half of 2015, subject to approval by the competition authorities.
“I’m delighted about this partnership and it is a great pleasure to welcome GIP as a partner of DONG Energy,” said Samuel Leupold, Executive Vice President of DONG Energy Wind Power. “I am also very excited about the evolution of DONG Energy’s market leading partnership model to facilitate this innovative long term investment by German institutional investors into the offshore wind sector for the first time.”
“We are delighted to be forming this strategic partnership with DONG Energy, a recognised leader in the energy sector and a pioneer in the development and operation of offshore wind farms,” added Adebayo Ogunlesi, Chairman and Managing Partner of GIP. “This transaction builds on GIP’s considerable experience in the renewable space and is in line with our strategy of partnering with industry leaders. We are pleased to bring GIP’s added-value investment model to the promising market for offshore wind projects.”
DONG Energy will finalize completion of the project, and will continue to provide operation and maintenance service to Gode Wind 1.
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DONG continues it’s path to free up resources from existing farms in order to have capital to make new ones. I take it as a sign that the market for completed wind farms has improved. The “market” has lowered expected “risk”, so DONG can get a good price now.
Sounds kind of like what a home builder does.
I would have titled the article differently. The title leaves it open to question, are they divesting because it is a bad investment, when in actuality it appears to be a good sign such that institutional investors now find it an acceptable risk. Now DONG can take that capital and work on more wind farms.
The pun is too easy for me to resist: someone needs to start up
an energy collective called DING and then have it merge with DONG.
Sorry . . . my next post will be serious and on topic.
At least you went in the ‘safe for work’ direction….