- Agreement enables Mainstream to accelerate its global expansion plan to bring 5.5 Gigawatts (GW) of assets to financial close by 2023 ahead of a planned IPO
- Mainstream to continue to operate under its existing brand, with its current CEO and management team and its founder Dr Eddie O'Connor as Chairman
Global wind and solar company, Mainstream Renewable Power, has signed an agreement with the renewable energy investment company Aker Horizons (a wholly owned subsidiary of Aker ASA) which will take a 75% equity stake in the company, subject to regulatory approval. The deal values Mainstream at EUR1 billion (including a potential earn-out of up to EUR 100 million in 2023 and subject to customary adjustments) which represents a significant return for shareholders of up to 5.5 times investment. The agreement paves the way for a rapid acceleration of Mainstream's global expansion plans to bring 5.5 Gigawatts (GW) of wind and solar assets to financial close by 2023.
The company, founded by Dr Eddie O'Connor in 2008, has significant interests across Latin America, Asia-Pacific and Africa, as well as in the global offshore wind sector, with over 1.2 GW of major capital projects currently under construction. Mainstream has a major market presence in Chile, Africa, and Vietnam, as well as assets in development in other countries including the Philippines, Australia, and Colombia. The company will remain focused on delivering its ~10 GW global development pipeline and growing its portfolio in existing as well as new markets, with the full backing of the Aker ASA group.
Under the terms of the agreement, the company will continue to operate as Mainstream, led by its CEO Mary Quaney and supported by its established and experienced leadership team. Eddie O'Connor will remain as Chairman, retaining a significant minority interest in the business and all existing shareholders will have the opportunity to reinvest alongside him ahead of a planned IPO of Mainstream within the next two to three years.
Commenting on the deal, Mainstream's Group Chief Executive Officer, Mary Quaney said:
"We are delighted to have such a highly respected business as Aker Horizons on board, enabling Mainstream to materially accelerate its growth plans to deliver a global portfolio of wind and solar assets. We plan to bring 5.5 GW of renewable assets to financial close globally by 2023, which sets us firmly on track to becoming one of the world's first pure-play renewable energy majors."
Mainstream's founder and Chairman Dr Eddie O'Connor said:
"This partnership is the crucial next step in the vision we set out for Mainstream in 2008 to lead the global transition to renewable energy and rid the world of CO2 emissions. It means we can widen our scope for entry into new markets and further deepen and expand our leadership position in existing ones, such as in Chile where we will soon be supplying the equivalent of one in seven Chilean homes with power from our wind and solar facilities. Critically, Aker Horizons shares our vision, mission and values, making it the right partner for Mainstream. Together with such an exceptional partner we will strengthen our position as a leader in the global energy transition during this critical decade."
Kristian R?kke, Chief Executive Officer of Aker Horizons, said:
"We are thrilled to partner with Mainstream as we accelerate our journey of what we call planet-positive investing. Mainstream's role as a pioneer in renewables and its strong entrepreneurial culture is a good fit as we carve out our path forward in the energy transition. Through the acquisition of Mainstream, Aker Horizons will gain a platform to drive forward its plans in renewable energy and position itself in a growing market for hybrid projects."
Rothschild & Co acted as financial adviser to Mainstream on the Transaction and Linklaters, Byrne Wallace and Philip Lee acted as legal advisors on the Transaction.
About Mainstream Renewable Power
Mainstream Renewable Power is the world's only independent developer of utility-scale wind and solar power assets with a global footprint. The company is focused on expanding its current development pipeline of ~10 GW of wind and solar assets across Latin America, Africa, Asia Pacific as well as the global offshore wind sector.
Mainstream has delivered 6.5 GW of wind and solar assets to financial close-ready and currently has over 1.2 GW (net) in construction across Latin America and Africa.
In Chile, Mainstream's wholly owned 1.3 GW of fully contracted wind and solar assets are on track to reach commercial operation from 2021. In Africa, the company has delivered 842 MW of wind and solar assets into commercial operation in South Africa. Through its Lekela Power joint venture in Africa, it has two wind assets in construction in Senegal and Egypt.
Mainstream is the most successful independent developer of offshore wind at scale globally. It has successfully consented Hornsea One (1.2 GW), the largest operational offshore wind plant in the world today; and developed the Hornsea 2 project (1.4 GW) before selling these projects in 2015. Mainstream fully consented the Neart na Gaoithe offshore wind project in Scotland, 450 MW, currently under construction. Mainstream's Soc Trang 1.4 GW offshore wind development in Vietnam is one of South East Asia's largest renewable energy developments.
Mainstream has raised more than EUR3.0bn in project finance to date and employs 335 staff across five continents.
About Aker Horizons
Aker Horizons is an investment company dedicated to developing companies that solve fundamental challenges to sustainable existence on our planet - or planet-positive investing. The company incubates, invests in and develops companies within renewable energy sectors and other technology segments that make material contributions to reducing emissions and promote sustainability. Aker Horizons leverages the significant industrial and financial capabilities of the Aker group to identify and develop portfolio companies. Aker Horizons is owned by Aker ASA, an industrial investment company that is listed on the Oslo Stock Exchange.
For more information, please contact:
Caroline Cutler & Thomas Pigott
Email: [email protected]
Mainstream Renewable Power
Emmet Curley, Head of Communications and Community Engagement
+353 86 2411690