Dong Energy to sell stake in offshore wind farm to KIRKBI, Oticon for $840 mn

Dong Energy yesterday agreed to sell a 50-per cent stake in a German offshore wind energy project to the Lego Group's parent company, KIRKBI A/S, and the Oticon Foundation, for DKK 4.7 billion ($840 million).

Dong Energy, the world's largest offshore wind-park developer, will sell the stake in the unbuilt Borkum Riffgrund 1, a 277.2 MW offshore wind park, to KIRKBI and Oticon, through its investment company, William Demant Invest A/S.

Denmark-based Oticon, is the controlling shareholder in hearing aids maker William Demant, which is the world's second-largest manufacturer of hearing aids. It makes

hearing aids, diagnostic instruments, audiometric and personal communication equipments.

The Borkum Riffgrund 1, which is to be located in the German part of the North Sea, is set to start construction next year and produce enough power for more than 285,000 homes when built.

Of the 50 per cent stake, KIRKBI will pay DKK 3 billion ($535 million) for a 32 per cent stake, while the Oticon Foundation will pay DKK 1.7 billion ($305 million) for the remaining 18 per cent.