Norway-based Aker Horizons, a wholly owned subsidiary of Aker ASA, will invest in a 75 per cent equity stake in Mainstream Renewable Power, with a valuation of Euro 1 billion, which includes an earn-out of up to Euro 100 million in 2023 and is subject to customary adjustments.
The valuation implies a considerable return for shareholders of up to 5.5 times the initial investment. The signing of this agreement is also expected to help Mainstream Renewable Power to move forward with its global expansion plan to bring 5.5 GW of assets to financial close by 2023. This is expected to happen ahead of its planned initial public offering.
Mainstream Renewable Power will to continue to operate under its existing brand, with its existing management team. Rothschild & Co acted as financial adviser to Mainstream on the transaction, while Linklaters, Byrne Wallace and Philip Lee acted as legal advisors.
The solar and wind company, Mainstream Renewable Power was founded in 2008. It has a growing presence in 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 has a plan to facilitate a 10 GW global development pipeline.