Mergers & Acquisitions Deal Analysis - DONG Energy to Sell its Stake in Nordkraft and Salten Kraftsamband to Troms Kraft by GlobalData

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									        Mergers & Acquisitions Deal Analysis - DONG Energy to Sell
       its Stake in Nordkraft and Salten Kraftsamband to Troms Kraft
       Reference Code: GDAE0076M&A                                                                                                          Publication Date: JUL 2010


       1         Table of Contents                                                                 2       M&A Deal Analysis – DONG Energy to
       1 Table of Contents.................................................................1               Sell its Stake in Nordkraft and Salten
        1.1 List of Tables .................................................................1              Kraftsamband to Troms Kraft
        1.2 List of Figures................................................................1
       2 M&A Deal Analysis – DONG Energy to Sell its Stake in                                      2.1    Summary
         Nordkraft and Salten Kraftsamband to Troms Kraft .............1
        2.1 Summary .......................................................................1       DONG Energy A/S (DONG) signed an agreement to sell its
       3 DONG Energy to Sell its Stake in Nordkraft and Salten                                     stakes in Nordkraft and Salten Kraftsamband to Troms Kraft, a
         Kraftsamband to Troms Kraft ...............................................1              power company which operates hydroelectric power plants in
        3.1 Deal Overview ...............................................................1         Norway. The deal involves the transfer of DONG’s 33.3% stake
        3.2 Deal In Brief...................................................................1
                                                                                                   in Nordkraft AS and its 23.7% stake in Salten Kraftsamband AS
        3.3 Comparable Deals.........................................................2
        3.4 Key Drivers of the Deal .................................................2             to Troms Kraft. The deal was announced on 24th June and is
          3.4.1    DONG Energy’s Perspective................................2                      expected to be completed by the end of this year. The total deal
          3.4.2    Troms Kraft’s Perspective ....................................4                 is valued at $318.3m. DONG’s 85/15 strategy and the
          3.4.3    Growth Strategy ...................................................4            company’s move to reduce its focus on large hydro are the key
        3.5 About the Companies....................................................4               factors that led DONG to make this deal. On the other hand,
          3.5.1    DONG Energy A/S ...............................................4                increased demand in the Norwegian electricity spot price and
          3.5.2    Troms Kraft AS.....................................................4
                                                                                                   the company’s plans for business consolidation in its territory
          3.5.3    Other Information .................................................5
       4 Appendix..............................................................................6   are the key factors that drove Troms Kraft to enter the deal.
        4.1 Methodology..................................................................6
          4.1.1    Coverage..............................................................6         3       DONG Energy to Sell its Stake in
          4.1.2    Secondary Research............................................6                         Nordkraft and Salten Kraftsamband to
          4.1.3    Primary Research ................................................6                      Troms Kraft
          4.1.4    Expert Panel Validation ........................................7
        4.2 Contact Us ....................................................................7
        4.3 Disclaimer .....................................................................7
                                                                                                   3.1    Deal Overview
                                                                                                   Deal Type                     : Acquisition
                                                                                                   Deal Sub Type                 : Minority Acquisition
       1.1       List of Tables
                                                                                                   Deal Status                   : Announced
       Table 1: Comparable Acquisitions in Hydro Power Sector .......2
       Table 2: DONG Energy A/S , Wind Parks, Planned and Under                                    Announced Date                : 24-Jun-2010
                 Construction, 2010 ...................................................2
       Table 3: Hydro Power Installed Capacity, 2000-2015, Norway3                                 Expected Closing Date         : 31-Dec-2010
       Table 4: Hydro Power Plants Owned by Salten Kraftsamband                                    Deal Value (US$)              : 318.3m
                 AS and Nordkraft AS ................................................5
                                                                                                   3.2    Deal In Brief
                                                                                                   DONG entered into an agreement to sell its 33.3% stake in
       1.2       List of Figures
                                                                                                   Nordkraft AS and its 23.7% stake in Salten Kraftsamband AS to
       Figure 1: Electricity Generation, DONG Energy A/S, 2009.......2                             an affiliate of Troms Kraft AS. The transaction is valued at
       Figure 2: Hydro Power Installed Capacity, 2000-2015, Norway3                                approximately (Danish Krone) DKK2,000mn ($318.3m). The
       Figure 3: Electricity Spot Price, Norway, Q1 2009-Q1 2010 ......4
                                                                                                   sale will enable DONG to reduce its presence in the large hydro
       Figure 4: GlobalData Methodology ..........................................6
                                                                                                   market and focus on other t
								
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