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Dong Energy sells shares of Swedish hydro project operator

Danish utility Dong Energy has agreed to sell its shares in hydroelectric plant operator Kraftgaarden AB to three Finnish power companies.

Included in the deal are Kymppivoima Oy, EPV Energy Oy and Helsingin Energia, which will control the 26% share previously owned by Dong Energy via a consortium called Skaerbaek.

The shares are worth about US$773 million and were sold as part of Dong Energy's efforts to cut its debt.

"With the divestment of our stake in this Swedish hydropower company, we're taking another significant step toward the realization of our financial action plan," Dong Energy CEO Henrik Poulsen said.

Dong had been a shareholder in Kraftgaarden since 1994, via a joint venture established with Vattenfall AB.

Kraftgaarden operates seven hydropower project along Sweden's Indalsalven River, which have a cumulative output capacity of 626 MW.

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