Aker ASA has announced that its subsidiary Aker Horizons has agreed to acquire 75% of Mainstream Renewable Power, the independent renewable energy company active in onshore and offshore wind and solar
The transaction values the current equity of Mainstream at €900M (US$1Bn) on a 100% basis and gives Aker Horizons a portfolio of projects in operation and under construction of about 1.4 GW, a project development pipeline of about 10 GW and a further 10 GW of identified project opportunities.
Aker Horizons chairman, and president and chief executive of Aker ASA Øyvind Eriksen said, “Aker made a step change last year, taking a position in renewable energy production, green technology, digitalisation and other mega trends that have seen accelerating flow of resources and capital in global markets.
“Combining Mainstream’s global organisation and renewable assets with Aker’s 180-year track record of building and developing industrial companies is another step in line with our long-term strategy for value creation and to position Aker Horizons for significant and sustainable growth in renewable energy markets.”
Aker Horizons is Aker’s investment platform dedicated to investing in, incubating and developing companies within renewable energy and decarbonisation technologies. Aker Horizons’ ambition is to develop companies with a total capacity of 10 GW and remove the equivalent of 25M tonnes CO2 per year by 2025.
Aker Horizons chief executive officer Kristian Røkke 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 renewable energy ambitions and position itself in a growing market for hybrid projects.”
Mainstream Renewable Power chief executive 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.”
In addition to the acquisition of Mainstream, Aker Horizons has ambitious investment targets and is currently in the process of preparing for a near-term private placement and a listing on Euronext Growth with a subsequent transfer of the listing to Oslo Børs within 12 months.
Existing Mainstream shareholders, led by founder and chairman Dr Eddie O’Connor, will re-invest and retain 25% ownership. Dr O’Connor will continue as chairman of the board of directors of Mainstream after completion of the transaction. Kjell Inge Røkke, Øyvind Eriksen and Kristian Røkke will become board members.
Dr 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 carbon dioxide emissions. It means we can widen our scope for entry into new markets and further deepen and expand our leadership position in existing ones.
"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."
As part of the transaction, Aker Horizons will acquire 50% of superconducting technology company SuperNode. SuperNode was founded by Dr O’Connor in 2018. It is hoped that its technology will enable offshore wind production to be connected efficiently with markets over longer distances.
The transaction is expected to close in Q2 2021, subject to customary closing conditions, including regulatory approvals.
Together Aker Horizons and Mainstream plan to accelerate the development of a global position in renewable energy, providing a platform and key competencies to establish a broad onshore, bottom-fixed and floating offshore wind portfolio.
Aker Horizons’ portfolio company, Aker Offshore Wind, and Mainstream’s offshore business will remain separate entities, but Aker Horizons will explore areas for partnerships and collaboration to accelerate their respective strategies following the acquisition.