PFA, one of the largest administrators of pension funds in Denmark, has teamed up with Danish energy company SE in an agreement to acquire the onshore wind business of DONG Energy, another Danish energy firm.
The onshore wind business has an enterprise value of DKK760 million (approximately €102 million; $133 million) and comprises 272 wind turbines with a total installed capacity of 196 megawatts (MW).
The turbines are located at 80 different sites around Denmark and have an average operational track record of 16 years. The deal also includes an early-stage development project which will have total capacity of up to 23MW.
In February this year, DONG Energy published a new strategy and financial action plan which included an intention to divest DKK10 billion of non-core assets and focus its wind power business on offshore wind.
The transaction is expected to complete later this year following approval by the Danish competition authorities and is expected to result in a gain before tax for DONG Energy of around €61 million.
Founded in 1917, PFA is the largest privately owned life insurance company in Denmark and the largest underwriter of group insurance and pension plans in the country. It has assets of around DKK352 billion.
Yesterday, PensionDanmark, the Danish labour pension fund, committed $200 million in the form of a mezzanine loan to Cape Wind, the first offshore wind farm in the US.