DONG Energy has signed and closed an agreement with a consortium of investors led by Macquarie Group’s Infrastructure and Real Assets business under which the consortium will acquire DONG Energy's gas-fired power station Severn. Severn power station is situated at Uskmouth near Newport in South Wales and generates electricity for the British national grid.

The aggregated sales price for the Severn power station is GBP 350 million cash (equivalent to approximately DKK 3.1 billion). In addition the agreement includes an earn-out based on future gross margin of the power station. The divestment is expected to result in a booked loss before tax of DKK 400-500 million. The loss will not have any impact on EBITDA.

Thomas Dalsgaard, Executive Vice President in DONG Energy, said,"We have succeeded in divesting the Severn power station at a satisfactory price in a difficult market. The divestment is an important element of the Group's strategy to divest non-core assets and thereby strengthen the capital base for the benefit of the future development of the company."

Tags: DONG Energy