Mainstream signs €1 billion equity investment deal with Aker Horizons
AGREEMENT TO DELIVER 5.5 GW GLOBAL BUILD-OUT PROGRAMME BY 2023
- Aker Horizons of Norway to take a 75% equity stake in Mainstream Renewable Power (“Mainstream” or “The Company”) valuing Mainstream at EUR1 billion including earn-out and subject to customary adjustments
- 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 Røkke, 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.