Global wind and solar company Mainstream Renewable Power has signed an agreement with renewable energy investment company Aker Horizons, which will take a 75% equity stake in the company, subject to regulatory approval.
The deal values Mainstream at €1-billion (including a potential earn-out of up to €100-million in 2023 and subject to customary adjustments), which represents a significant return for shareholders of up to 5.5 times the investment, the company acclaims.
It also notes that the agreement paves the way for a rapid acceleration of Mainstream's global expansion plans to bring 5.5 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. Aker Horizons is a wholly owned subsidiary of Aker ASA.
Under the terms of the agreement, the company will continue to operate as Mainstream, led by CEO Mary Quaney and supported by its established leadership team.
O'Connor will remain chairperson, retaining a significant minority interest in the business and all existing shareholders will have the opportunity to reinvest alongside him ahead of a planned initial public offering of Mainstream within the next two to three years.
"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,” says Quaney.