Dong Energy to close Nysted deal with PensionDanmark by end 2010

(ADPnews) - Nov 24, 2010 - Danish state-owned utility Dong Energy A/S said Tuesday it plans to complete the sale of part of the Nysted wind farm offshore Denmark to pension fund PensionDanmark by the end of 2010, as all conditions have now been fulfilled.

On September 9, Dong Energy agreed to sell 30% of its 80% interest in the Nysted wind farm to PensionDanmark for DKK 400 million (USD 71.8m/EUR 53.7m) in cash. In addition, the utility was to buy the 20% holding of German rival E.ON AG (ETR:EOAN) and resell it to PensionDanmark at a price of DKK 300 million.

Following the transaction, Dong Energy and PensionDanmark will each own 50% of the Nysted offshore wind farm, and the utility will continue to be responsible for the operation of the facility.

The Nysted project, located south of the island of Lolland, has a capacity of 165.6 MW and since its commissioning in 2003 it has delivered about 570 GWh of renewable energy a year.

Today's announcement will not affect Dong Energy's financial outlook for 2010 or the expected investment level, the company added.

(DKK 1.0 = USD 0.180/EUR 0.134)

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