Saturday, 17 September 2016

Denmark launches investigation into Dong's £10 billion overflow

Dong Energy

Denmark based Dong Energy, is under political scrutiny after the country’s national audit office launched an investigation into the role of key parties involved in the launch.

The privatisation of the offshore wind farm developer Dong Energy in June put an £10 billion price tag on the company as the sale raised 17 billion kroner (£1.9 billion) for the Danish state and a consortium of investors led by Goldman Sachs.

Dong is a major operator in Britain and Germany.

The sale meant the Wall Street bank doubled its investment made just two and a half years earlier, fuelling criticism in Denmark that the previous government sold an 18% stake to the Goldman consortium too cheaply.

Denmark’s public accounts committee asked the audit office to investigate issues related to the sale and subsequent float, including the role of the company’s management and the finance ministry in the valuation and sale of shares.

It also asked it to look into Dong’s dividend payout to Goldman and the Danish state since the flotation.

Dong said it "looked forward to an investigation shedding light on the facts and dismissing the myths". Goldman declined to comment.


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