Dong Energy has announced that it is selling half of its 50 per cent share in London Array to La Caisse de depot et placement du Quebec for $1.06bn (à‚£644m). This means Dong will continue to have a 25 per cent share in the 630MW London Array 1 offshore wind farm.
It is the second major development at the Danish company in the last 24 hours. Yesterday the Danish government agreed to sell 20 per cent of its share in Dong to Goldman Sachs.
The deal signals the final stage in DONG Energy’s group divestment strategy whereby capital is being used to fuel future growth in DONG’s core markets and sectors.
At completion of the transaction, La Caisse will enter the existing joint venture with a 25 per cent ownership share alongside Dong Energy (25 per cent), E.ON (30 per cent) and Masdar (20 per cent).
Dong will remain the service provider of O&M services to the facility.
Samuel Leupold, Executive Vice President of DONG Energy Wind Power said in an emailed statement, “Farm down of our ownership shares in wind projects is a central part of our business model and our strategy is to continuously enter into partnership agreements with industrial and financial partners to extract part of the value creation from our projects, share the risk in our portfolio and attract capital to be able to continue to invest in new offshore wind farms.”
“We look forward to continuing the collaboration with the partners behind the consortium of London Array, now including La Caisse.”
Macky Tall, Senior Vice-President, Infrastructure, at La Caisse said, “We are investing in this project with a long-term horizon and expect to generate attractive returns for many years ahead. We have had excellent dialogue with the company over the last several months and are delighted to announce this agreement today.”
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