* Four regional utilities to invest in planned capital
* Goldman investment expected to be approved in parliament
COPENHAGEN Jan 17 Four of DONG Energy's
five minority shareholders will invest 2.05 billion
Danish crowns ($373.67 million) in a planned capital increase
backed by Goldman Sachs and two Danish pension funds, ATP
and PFA, DONG said on Friday.
The four shareholders, SEAS-NVE, SYD ENERGI, Nyfors
Entreprise and Insero Horsens, are regional energy companies
from different areas of Denmark. The fifth minority shareholder,
Galten Elværk, is not participating.
Danish pension funds ATP and PFA and funds managed by
Goldman Sachs said in October that they will invest a total of
11 billion crowns in DONG Energy in a deal which still needs
final approval from the Danish parliament
The capital increase will allow DONG to strengthen its
balance sheet, hit by falling electricity demand due to the
economic crisis and competition from cheap coal, and pursue its
ambition to become a leading player in offshore wind energy.
The deal has been criticized by the left-wing Red-Green
party alliance and the right-wing Danish People's Party for
giving Goldman Sachs a veto in a number of key areas such as
changes in the management, bigger acquisitions and divestments.
However, a majority of the parties in parliament have
indicated in conversations to Reuters that they will support the
deal, and therefore it is expected to be approved.
A meeting in parliament about the share sales, initially
scheduled for next week, has been postponed.
Goldman Sachs Infrastructure Partners - one of the world's
biggest infrastructure investors with nearly $10 billion under
management - will subscribe to new shares worth 8 billion
crowns, along with energy-focused private equity fund Broad
Street Energy Partners, also managed by Goldman Sachs.
On completion of the capital increase the Danish State would
own around 57 percent of the shares, Goldman Sachs funds 18
percent, SEAS-NVE 11 percent and ATP 5 percent, DONG said in a
statement on the stock exchange.
The subscription for new shares is based on a valuation of
DONG Energy at 31.5 billion crowns prior to the capital
increase, it said.
The European Commission approved Goldman Sachs' acquisition
of the stake in DONG Energy earlier in January.