Dong Energy is preparing to go public

Thursday, 8 October, 2015 - 11:45

Dong Energy is preparing to be listed on the stock exchange. The Danish government, which is the majority shareholder of the energy company, has specified a period of 18 months for the process. It will be the largest IPO in Danish history.

In connection with the capital injection into Dong Energy in February 2014, it was agreed between the main shareholders and the company to develop an Initial Public Offering (IPO) roadmap addressing Dong Energy's continued strategic development ahead of a potential IPO. This roadmap has now been completed. Dong intends to pursue an IPO within 18 months, subject to market conditions. The company will now initiate preparations to allow the IPO to take place as soon as possible.

The Danish government has confirmed that it will maintain a controlling stake in Dong after the IPO. Furthermore, Dong commits to be adequately capitalised and to maintain a robust and stable financial profile with a minimum rating of BBB+/Baa1.

Strategic approach

Ahead of the IPO, Dong will continue to strengthen its position as a world-class clean energy company with a diversified renewable portfolio based on leading competences in offshore wind and biomass, as well as distribution and sales anchored in Dong Energy's home market Denmark.

Dong's E&P business operates in a structurally different market environment that is currently characterised by the significant drop in oil prices over the past 12 months. A business programme has been initiated to adapt the E&P business to the new market reality. The board of directors and management will give full attention to the successful execution of this programme.

In the area of wind power, Dong will continue to drive profitable growth and reduce the cost of electricity for offshore wind, thereby reinforcing the company's global leadership position and providing a scalable and effective tool to combat global climate change.

Additionally, in a joint understanding with the Danish government, Dong Energy will seek to divest its gas distribution and oil and gas pipelines to Energinet.dk at an appropriate point in time and at market conditions.

Katharina Garus / Dong Energy

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