Goldman Sachs Group Inc announced that it would be purchasing a DKK8 billion or USD1.46 billion stake in Dong Energy A/S. Dong Energy is the largest utility in Denmark and the capital infusion would clean up its balance sheet after it had lost funds on failed natural gas projects.

The stake purchase would allow the bank to hold 19% of the utility, whose majority shareholder is the Danish government. Further capital infusions of DKK2.2 billion and DKK800 million from Danish pension funds ATP and PFA respectively. ATP would receive 5% shareholdings while PFA would get 2%.

The Danish government initially planned to do an IPO back in 2008. Last February, it would be selling off a stake in the company as its writedowns soared. Dong said the parties have agreed to undertake an IPO in the future when the conditions 'are right'.

The utility firms would have the option to sell off their shareholdings to the government when the IPO would not push through before the release of the firm's 2017 financial report, as confirmed in the statement issued by the company.

For its part, Goldman Sachs Merchant Banking Division for Europe Head Andrew Wolff said that the bank intends to 'grow the business and provide environmentally friendly energy and infrastructure for European markets.'