Dong Energy may sell part of London Array stake to Canadian pension fund - report

Feb 11, 2013 - Denmark's Dong Energy is close to selling half of its 50% holding in the London Array offshore wind farm to Canadian pension fund Caisse de depot et placement du Quebec for GBP 500 million (USD 786m/EUR 587m), The Sunday Times said yesterday.

The Danish utility has hired investment bank Citi to sell the stake and the Canadian fund is understood to be poised to purchase it, according to the report.

The London Array, located in the Thames Estuary in the UK, is capable of generating enough power for over 600,000 homes. The 630-MW Phase 1 of London Array offshore wind park kicked off generation in October.

Dong led the GBP-2-billion project and now wants to recover part of its cash, The Sunday Times said. The other two companies that own stakes in the wind farm, German utility E.on AG (ETR:EOAN) and Masdar of Abu Dhabi, are not selling, according to the report.

A second phase is expected to bring London Array's total capacity to 870 MW.

(GBP 1.0 = USD 1.572/EUR 1.174)

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