Goldman Missed Out on $800 Million After Selling Dong SharesBy
Wall Street firm has exited after 2017’s fourth bookbuild
Shares in Dong have jumped 50% since Goldman’s first sale
Goldman Sachs Group Inc. made a huge return on its controversial investment in Dong Energy A/S, but the Wall Street firm would have made considerably more money if it had sold a bit later.
New Energy Investment S.a.r.l. (which is controlled by Goldman’s merchant banking unit) on Thursday sold its last shares in the Danish utility after completing its fourth accelerated bookbuild offering this year.
The price per share was about 50 percent higher than Goldman got in its first bookbuild in February. It was also significantly higher than the price at which it sold in May and August. Goldman could have pocked about 5 billion kroner ($800 million) more if it had completed all of 2017’s four sales at today’s price.
But Goldman has reason to be pleased with its investment (which back in the day triggered a political scandal that split the government in 2014). The firm made about 20 billion kroner on its 8 billion-krone investment, excluding dividends and an over-allotment. That’s roughly 150 percent over 3 and 1/2 years.