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Danish Socialist People’s Party leader Annette Vilhelmsen speaks to the media in Copenhagen on Thurs. Jan. 30, 2014, after her party quit the coalition government amid discord over plans to sell a stake in state-controlled DONG Energy to Goldman Sachs and other investors, including Quebec’s Caisse.Katinka Hustad/The Associated Press

Quebec's giant pension fund manager has agreed to pay almost $1.2-billion to buy a stake in an offshore wind farm from an embattled Danish energy company.

The Caisse de dépôt et placement du Québec said it would pay £644-million ($1.18-billion) – to purchase a 25-per-cent stake in London Array 1 from Denmark-based DONG Energy.

DONG will retain 25-per-cent ownership of the giant London Array wind farm, while the remaining 50 per cent will be held by other partners.

The deal comes amid a week of conflict for DONG, a majority state-owned company in Denmark that is in the midst of a highly controversial effort to raise funds to recapitalize the financially troubled firm.

The Danish government approved plans this week to sell an 18-per-cent stake in DONG to U.S. banking group Goldman Sachs for $1.5-billion (U.S.). Danish pension plans will also acquire smaller stakes in the company, reducing the Danish government's total stake in the energy company to 57.3 per cent from 81 per cent.

The decision to sell a stake to Goldman has led to wide-scale demonstrations in Denmark this week as labour groups and other citizens urged a "made in Denmark" solution to keep DONG in Danish hands. One poll found 68 per cent of Danish voters opposed the sale to the Wall Street firm.

On Thursday, the country's Socialist People's Party withdrew from a ruling coalition with the Social Democrats after the Danish government approved the Goldman deal. Finance Minister Bjarne Corydon, however, defended the Goldman sale and said it is "good DONG Energy now has solid ground under its feet."

On Friday, DONG said the sale of half its stake in the London Array wind farm to the Caisse means the company has delivered on the final commitment it outlined in a financial action plan unveiled last year to improve the company's financial footing by cutting costs and selling assets to reduce debt. In a statement announcing the deal, the company said the financial plan is "securing the foundation for the future growth in DONG Energy."

Caisse senior vice-president of infrastructure Macky Tall said the pension fund's investment provides "a quality asset in a growth-driven sector."

The London Array wind farm is located about 20 kilometres off the cost of southeast Britain near Kent and Essex, and covers a 90-square-kilometre site. It includes 175 turbines with a combined capacity to produce 630 megawatts of power.

The Caisse deal is expected to close in the first half of 2014.

Samuel Leupold, executive vice-president of DONG Energy Wind Power, said in a statement that the sale of a portion of the company's wind projects is a central part of its strategy to "extract part of the value creation from our projects." He said the sale will also attract capital to be able to invest in new offshore wind farms.