We are delighted to report that Aker Horizons AS has agreed to acquire 75% of Mainstream Renewable Power Ltd. The transaction is expected to be completed in the first half of this year and ascribes an equity value of €900 million to the company.
Mainstream is a leading independent renewable energy player with a global footprint and a proven track record across renewable power industries. Established in 2008 by Dr. Eddie O’Connor following the sale of Airtricity, Mainstream has developed a portfolio of projects in operation and under construction of c.1.4GW, in additional to a project development pipeline of c.10GW. The Aker Horizons investment in Mainstream represents another remarkable success story for Dr. Eddie O’Connor and for clients of Cantor Fitzgerald Ireland who have supported the company since those early days.
The corporate finance team at Cantor Fitzgerald Ireland has partnered with Mainstream since 2008 and has raised both equity and debt capital for the company over this period. The deal with Aker Horizons will result in a positive investment return for Cantor Fitzgerald clients who acquired shares in the company, should they elect to sell their shares as part of the deal. Subject to certain minimum thresholds, investors will also have the option to rollover their investment and to continue the Mainstream journey which Eddie O’Connor anticipates will be a future Initial Public Offer.
Mainstream’s success is another example of Cantor Fitzgerald’s commitment and track record in identifying and presenting renewable energy investment opportunities to our clients. Investment in this sector is instrumental in driving action on climate change, while creating employment opportunities and local income. The renewable energy sector is key to achieving the UN Sustainable Development Goals (“SDGs”) which aim to realise a more sustainable future for all. At Cantor Fitzgerald, we use the SDGs as a framework of reference to understand how investee companies can contribute to sustainable economic growth and we remain steadfast in our commitment to accelerating progress on this front.
- Aker Horizons agrees to acquire 75% of Mainstream Renewable Power for a total consideration on a 100% basis of €900 million.
- 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.
- The agreement includes an additional earn-out payment in 2023 of up to €100 million to selling shareholders based on meeting certain milestones.
- The transaction is expected to close in Q2 2021, subject to closing conditions.
Aker Horizons’ investment in Mainstream will accelerate the company’s global expansion plans to bring 5.5 Gigawatts (GW) of wind and solar assets to financial close over the coming years.
Aker Horizons is a wholly owned entity of Aker ASA, which is a Norwegian industrial investment company founded in 1841. It exercises ownership positions in public companies to create value.
Alan Wall is an Associate Director of Corporate Finance at Cantor Fitzgerald Ireland.
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