Danish energy company DONG Energy announced earlier this month that it had divested its Danish gas distribution business to Energinet.dk.
In a move tied in with the company’s intentions to launch an initial public offering (IPO), DONG Energy announced that it had divested its Danish gas distribution company, DONG Gas Distribution A/S, which will be acquired by the state-owned Energinet.dk for 2.3 billion Danish kroner ($352 million).
DONG Energy described the transaction as “part of the political agreement regarding DONG Energy’s Initial Public Offering,” which the company confirmed last week. After the results of its IPO roadmap were published last September, DONG Energy has been making tentative steps towards announcing its IPO intentions — which came to fruition on May 12, when the company confirmed that it intends to proceed with its IPO.
The Kingdom of Denmark currently owns 58.8% of DONG Energy, which explains the political agreement that necessitated the sale of the company’s gas distribution business. The sale of the business is still subject to approval by the country’s Ministry of Finance, the Ministry of Energy, Utilities and Climate, and competition authorities, and the two companies are set to enter into a transitional services agreement under which services are provided for an agreed period post-closing. DONG Energy will also transfer 97 employees to Energinet.dk when the transaction is closed.
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