Denmark-based DONG Energy and the state owned entity, Energinet.dk, signed an agreement under which Energinet.dk will acquire DONG Energy’s 100% ownership stake in DONG Storage for a total consideration of 2.25 billion Danish krone (US$385 million) on a debt and cash free basis. A payment from Energinet.dk related to an earn-out that was part of DONG Energy’s divestment of Lille Torup gas storage facility to Energinet.dk in 2007 was included in the price.
DONG Storage owns and operates the Stenlille gas storage facility, which is the largest of two gas storage facilities in Denmark. The facility has a working gas volume of 575 million cubic meters, corresponding to 57% of the total Danish gas storage capacity. According to EU legislation governing the rules for third-party access, DONG Energy will still be able to use the Stenlille facility as a storage customer on ordinary business terms.
The transaction is subject to approval by competition authorities and the Danish Ministry of Climate, Energy and Building. Closing is expected at the end of 2014 or beginning of 2015.
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