• Denmark's news in English
 
app_header_v3

Denmark lost billions on Goldman Sachs deal

The Local · 25 Mar 2015, 10:09

Published: 25 Mar 2015 10:09 GMT+01:00

Denmark lost out on billions of kroner when it sold partial ownership of Dong Energy to American investment firm Goldman Sachs in January 2014, Politiken reported Wednesday
 
When the Danish government sold an 18 percent stake of Dong to Goldman Sachs, the Finance Ministry calculated the company’s value at 31.5 billion kroner ($4.6 billion). 
 
But just three months later, Dong was granted the rights to instal a massive offshore wind park supported by the United Kingdom. According to Politiken, that deal shot Dong’s value up to over 50 billion kroner but was not calculated into the Goldman Sachs sale despite both Dong and the investment firm being fully aware of it. 
 
Politiken also reports that the looming deal was common knowledge throughout the wind industry. 
 
An advisor with Danish acquisitions firm Audon told the newspaper that the UK wind farm deal should have been calculated into the sale. 
 
“If a company is looking at an essential new order immediately after a sale, one would typically wait to do the sale until the deal is done. If that’s not possible, then a price regulation mechanism should be used so that the buyer pays more if the company rises in value after the sale,” Frederik Aakard. 
 
A Dong spokesman confirmed that the UK wind farms did not “play a special role” in the sale to Goldman Sachs, but would not comment on Politiken’s calculations that the government missed out dearly on the deal.
 
 
Finance Minister Bjarne Corydon told the paper that he “flatly rejects that the sale of Dong shares was too cheap”.
 
“The price included expectations on future earnings weighed against the risk of future projects not coming through,” he said. 
 
The partial sale of state-owned Dong was deeply controversial and faced massive popular and political resistance. 
Story continues below…
 
The decision to sale caused the Socialist People’s Party to withdraw from the government coalition and an online petition against the sale gathered just shy of 200,000 signatures. 
 
There were also reports that Danish pension fund had offered a higher bid for Dong, valuing the company at 46 billion kroner to Dong’s 31.5 billion. 
 
A video from Financial Times discussing the deal can be viewed below. 

For more news from Denmark, join us on Facebook and Twitter.

Your comments about this article

Today's headlines
Danish 'devil of death' nurse gets life for killing patients
Photo: Thomas Lekfeldt/Scanpix

A Danish nurse, dubbed a "devil of death" by prosecutors, was on Friday sentenced to life in prison for murdering three patients and trying to kill a fourth.

Brexit
Brits in Denmark left shocked and concerned by Brexit
British expats in Denmark were left feeling like these supporters of the 'Stronger In' campaign who watched the referendum result in London early on Friday. Photo: Rob Stothard/AFP/Scanpix

The Local spoke with a handful of British expats living in Denmark on Friday and not a single one was happy about the referendum result.

Roskilde Festival 2016
8 key questions ahead of this year’s Roskilde Festival
It's that time again! Roskilde begins on Saturday. Photo: Tobias Nicolai/Roskilde Festival

Denmark's biggest party is about to kick off – here's what we'll be keeping our eyes on as The Local once again heads to Roskilde.

Brexit
Denmark vows to defend euro peg after Brexit vote
The Danish krone has had a fixed exchange rate since 1982. Photo: Colourbox

National Bank "will do what it necessary to maintain a stable exchange rate".

Brexit
EU-sceptic Danish party calls for referendum, PM says no
PM Lars Løkke Rasmussen and FM Kristian Jensen addressed the Brexit results on Friday morning. Photo: Uffe Weng/Scanpix

The Red-Green Alliance wants a Danish referendum on EU membership within a year but the PM reaffirms that "we belong in the EU".

Maersk to mull splitting group under new CEO

Danish oil and shipping conglomerate A.P. Moller-Maersk named a new chief executive and said major changes could be in store.

Brexit
Danish PM: Brexit ‘very sad’ for Denmark and EU
Leave supporters cheer the referendum results on Thursday night. Photo: Toby Melville/Scanpix

Lars Løkke Rasmussen said on Friday morning that he is disappointed in the United Kingdom’s decision to leave the EU.

Brexit
Why Denmark won't try to follow the UK out of the EU
Photo: Bjørn Wylezich/Iris/Scanpix

With Brexit a reality, many point to Denmark as being the next country to follow suit but Danish experts say they are wrong.

Denmark's Sankt Hans Aften explained: Witches and rain
How many hay witches will die tonight? Photo: Colourbox

Denmark will be ablaze with bonfires on Thursday night – if predicted heavy rains don't put a damper on the Sankt Hans Aften celebrations.

Brexit
We hate EU too but 'please stay', Danish daily urges Brits
A woman rides a bicycle as she leaves a polling station at the Royal Hospital in Chelsea, west London on Thursday. Photo: Leon Neal/Scanpix

In a rare move, Berlingske made an English-language appeal to Brits.

Sponsored Article
Why you should attend an international job fair
International
After Brexit, Danish PM resists calls for similar EU referendum
Sponsored Article
VIDEO: Why Malmö is the world's 6th best city for biking
Copenhagen police tear down Christiania cannabis market
National
Copenhagen police tear down Christiania cannabis market
Danish PM: Orlando shooting act of 'hatred'
International
Danish PM: Orlando shooting act of 'hatred'
Society
Sex campaigns lead to Danish baby boom
National
Don't worry Denmark, the world still loves you
Culture
Danish diversity ad a massive social media hit – have you seen it?
National
Denmark scraps green card but spares current holders
Denmark takes historic step for transgender rights
Society
Denmark takes historic step for transgender rights
Denmark to impose new 'integration' rules on kids
National
Denmark to impose new 'integration' rules on kids
Green card holders in Denmark in race against time
National
Green card holders in Denmark in race against time
How Copenhagen achieved an ‘organic food revolution’
National
How Copenhagen achieved an ‘organic food revolution’
Travel
The second best destination in all of Europe is...
Sport
We are the champions! Denmark wins world badminton team title
After 100 years, British WW1 sailor identified in Denmark
National
After 100 years, British WW1 sailor identified in Denmark
Society
Strangest political story in Denmark just got stranger
International
Keeping Denmark in Europol 'maybe impossible'
Analysis & Opinion
Green card holders tell Denmark to keep its promise
National
Denmark picks F-35 in historic jet purchase
Society
Denmark to no longer define transgender as mental illness
National
Danish minister tells 'Sharia' troublemakers to 'get a job'
Culture
Danish 'martyr' exhibit reported to police
National
Denmark extends 'temporary' border measures for sixth time
2,271
jobs available