The other two parties in the center-left government back the sale but the Socialist People's Party was split on the issue.
After more than a year of infighting, party leader Annette Vilhelmsen resigned today and the party withdrew its six ministers from the 23-member Cabinet.
The move weakens Prime Minister Helle Thorning-Schmidt's coalition but she said it would stay in power as a two-party minority government because it still has the support of the socialists in Parliament.
The deal is intended to boost the ailing finances of Dong Energy, Denmark's largest energy company.
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