Goldman Sachs to float Dong

The announcement did not include an estimated valuation for the company, but analyst reports suggest a minimum market cap of DKK 50bn, with top-end estimates pushing DKK 70bn.

At a DKK 50bn valuation, the Dong listing would be the largest IPO in Danish history, surpassing the DKK 40bn listing of the state-owned telecom company TDC in 1994.

Ahead of the flotation, Dong will divest its distribution networks to the Danish government's Energinet.dk, and is also likely to sell of its oil and gas exploration and production division.

The Danish government currently holds a 58.8% shareholding in Dong – the country's largest energy company – and will retain a controlling stake following the IPO.

Goldman Sachs acquired a 17.9% stake in Dong when the Danish government divested part of its holding in 2013. Danish pension funds ATP and PFA acquired 5% and 2% of Dong, respectively, while fellow Danish energy cooperative Seas-NVE retained its 10.8% stake.

The sale caused controversy in Denmark, as several claims were made that the DKK 32bn valuation was too low. Criticism was also levelled at Goldman Sachs' creation of several offshore holding companies in relation to the acquisition, which critics said would allow the investor to avoid certain taxes in Denmark.

Additionally, three senior members of the second-largest party in the then-government's coalition, Socialistisk Folkeparti, resigned in protest after the deal was agreed.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Nordics
• Exits
• Denmark
• IPO
• Goldman Sachs