Dong Sells Severn to Macquarie Group

Denmark’s Dong Energy disinvested from the United Kingdom, selling the gas-fired power station Severn to a consortium of investors led by Macquarie Group’s Infrastructure and Real Assets business. 

The aggregated sales price for the station is £350 million cash and an earn-out based on future gross margin of the power station. 

“We have succeeded in divesting the Severn power station at a satisfactory price in a difficult market. The divestment is an important element of the Group's strategy to divest non-core assets and thereby strengthen the capital base for the benefit of the future development of the company,” Thomas Dalsgaard, Executive Vice President in Dong Energy, commented in a note released on Tuesday.

 Severn power station has a capacity of 832MW and is able to generate power for almost 1.5 million British households. It commenced commercial operation in November 2010. According to Dong Energy, the sale will not have any impact on EBITDA.