Aker buys majority stake in Mainstream Renewable Power with IPO on the horizon

Norwegian energy company Aker ASA is to become the majority owner of Mainstream Renewable Power Ltd. after agreeing to acquire a 75% equity stake in a deal that values the Irish wind and solar developer at €1 billion including earnouts.

The agreement will enable Mainstream to accelerate its global capacity rollout, with the company planning to bring 5.5 GW of renewable energy assets to financial close by 2023 ahead of an IPO, the company said Jan. 19.

The transaction, which is still subject to regulatory approval, was made by Aker's investment platform, Aker Horizons AS. Mainstream will continue operating under its own brand and leadership team, with founder Eddie O'Connor remaining as chairman and Mary Quaney as CEO.

Founded in 2008, Mainstream has interests across Latin America, Asia-Pacific and Africa, as well as in the global offshore wind sector, with over 1.2 GW of projects currently under construction.

The company has large presence in markets such as Chile, Africa and Vietnam, and assets in development in other regions including the Philippines, Australia and Colombia. The company is aiming to deliver a 10-GW global development pipeline in new and existing markets, now with the backing of Aker.

"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," O'Connor said.

"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," said Kristian Røkke, CEO of Aker Horizons.

Both Aker and Mainstream have interests in floating wind technology, looking to prevail in an ongoing Darwinian selection process for the most scalable solution. Aker Solutions ASA is working on the WindFloat Atlantic platform with Principle Power Inc.

Rothschild & Co acted as financial adviser to Mainstream on the transaction with Aker, while Linklaters, Byrne Wallace and Philip Lee acted as legal advisers.

DNB Markets, Nordea Bank's Norway branch and Green Giraffe acted as financial advisers to Aker Horizons, while Advokatfirmaet BAHR and Slaughter & May were its legal advisers.