Goldman Cuts Stake in Danish Utility

US bank Goldman Sachs has further reduced its interest in Danish energy and renewables utility Dong Energy, the latter said August 31.

New Energy Investment, which is controlled by Goldman Sachs, has agreed to sell 7.5mn shares in Dong, equivalent to a 1.78% stake in the latter.

Following settlement, NEI will retain 11,435,215 shares in Dong Energy corresponding to 2.7% of the company. It has agreed to a 60-day lock-up period from August 30 on that remaining stake subject to conditions. Dong clarified it will not receive any proceeds from the NEI transaction.

At its peak, Goldman-run NEI held an 18% stake in Dong for which it paid $1.5bn; its entry into state-run Dong's share capital in 2014 led to the collapse of the government at the time, following street protests and criticisms of how Goldman acquired the stake.

Dong now is divesting its upstream business, having agreed to sell Dong E&P to UK-based Ineos for $1.05bn in May; that deal was cleared by the EU in June but is understood to have not yet been completed. Last week the sale of Denmark's other big upstream company, Maersk Oil, was agreed to Total.

Mark Smedley