Page 8 - AfrElec Week 03 2021
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AfrElec RENEWABLES AfrElec
Aker Horizons buys 75% stake in
Mainstream to drive 5.5-GW expansion
ASIA AKER Horizons is to pay $919mn to buy a 75% business and all existing shareholders will have
equity stake in Mainstream Renewable Power, the opportunity to reinvest alongside him ahead
valuing the developer at $1.11bn. of a planned IPO of Mainstream within the next
The deal paves the way for a rapid accelera- two to three years.
tion of Mainstream’s global expansion plans to “We are delighted to have such a highly
bring 5.5 GW of wind and solar assets to finan- respected business as Aker Horizons on board,
cial close by 2023. enabling Mainstream to materially accelerate
Aker Horizons, the cleantech investment sub- its growth plans to deliver a global portfolio of
sidiary of Aker ASA, is to pay €758mn ($919mn) wind and solar assets. We plan to bring 5.5 GW
for a 75% stake in Mainstream, valuing the Ire- of renewable assets to financial close globally by
land-based developer at €900mn ($1.1bn). 2023, which sets us firmly on track to becom-
Mainstream has significant interests across ing one of the world’s first pure-play renewable
Latin America, Asia-Pacific and Africa, as well energy majors,” Quaney said.
as in the global offshore wind sector, with over Mainstream’s founder and chairman Eddie
1.2 GW of major capital projects currently under O’Connor said: “This partnership is the crucial
construction. next step in the vision we set out for Mainstream
Mainstream has a major market presence in in 2008 to lead the global transition to renewa-
Chile, Africa and Vietnam, as well as assets in ble energy and rid the world of CO2 emissions.
development in other countries including the It means we can widen our scope for entry into
Philippines, Australia and Colombia. new markets and further deepen and expand
The deal, which is expected to close in the our leadership position in existing ones, such
second quarter of 2021, is subject to regulatory as in Chile, where we will soon be supplying the
and other approvals. it also includes a €100mn equivalent of one in seven Chilean homes with
($121mn) earn-out payment due in 2023 if power from our wind and solar facilities.”
Mainstream meets “certain milestones,” Aker Kristian Røkke, CEO of Aker Horizons, said:
said in a press release. “We are thrilled to partner with Mainstream as
Mainstream will remain focused on deliver- we accelerate our journey of what we call plan-
ing its 10-GW global development pipeline and et-positive investing. Mainstream’s role as a pio-
growing its portfolio in existing as well as new neer in renewables and its strong entrepreneurial
markets, with the full backing of the Aker ASA culture is a good fit as we carve out our path for-
group. ward in the energy transition.
Under the terms of the agreement, the com- “Through the acquisition of Mainstream,
pany will continue to operate as Mainstream, Aker Horizons will gain a platform to drive for-
led by CEO Mary Quaney and supported by its ward its plans in renewable energy and position
established and experienced leadership team. itself in a growing market for hybrid projects.”
Eddie O’Connor will remain as chairman, Aker Horizons said that it was planning to list
retaining a significant minority interest in the Mainstream within the next three years.
P8 www. NEWSBASE .com Week 03 21•January•2021
