BrazilBaringa advises Mainstream on deal with Norway's Aker Horizons
Mainstream Renewable Power has been acquired by Norway's Aker Horizons, in a deal that values the Irish wind and solar company at around €1 billion. Baringa Partners was one of the lead sell-side advisors to the deal.
Since launching in 2008, Mainstream has made a total of 6.4 GW of renewable energy assets ready for investment, plus another 1.4 GW in the works. The company’s global projects span Latin America, Africa and Asia, and account for 22% of the UK’s offshore wind capacity.
Aker Horizons – the renewables-focused arm of Norwegian investment group Aker – has now taken a 75% stake in Mainstream, with plans to turn the latter into a “renewable energy major” according to Reuters. Advising Mainstream on the deal was UK-based management consultancy Baringa Partners.
Baringa's energy practice delivered market analysis and forecasting that underpinned the transaction. This includes price projections for electricity in Mainstream’s key and target markets; predictions on the long-term renewable energy share of power in these markets; and revenue projections based on the commercial performance of renewable assets.
“We are pleased to have had Baringa Partners support us as our market advisers in several regions on this transaction, providing us and our investors with an independent view of the outlook for renewable energy assets in emerging power markets globally,” said Paul Corrigan, CFO at Mainstream.
Baringa’s global head of power generation – energy & resources Phil Grant revealed that Asia and Latin America were focus areas for the firm’s market analysis. These regions are home in part to myriad Mainstream renewable assets, including a 700 MW advanced pipeline that will be ready for financing in 2021 and over 9GW of other development assets.
Grant noted excitement for “seeing the pipeline become operational,” adding that “Mainstream is a truly global renewable generator, with a strong heritage in developing innovative projects.” The energy company has plans to prepare over 5GW of renewable assets by 2023 – a goal that will receive a resource boost once the Aker deal reaches its expected close in the second quarter of this year.
“It means we can widen our scope for entry into new markets and further deepen and expand our leadership position in existing ones, such as in Chile where we will soon be supplying the equivalent of one in seven Chilean homes with power from our wind and solar facilities,” said Mainstream founder and Chairman Eddie O’Connor.
Looking ahead
Aker Horizons takes a 75% stake in Mainstream, while the latter will reportedly retain its name, and likely its global team of over 300 employees across 11 countries. The transaction valued Mainstream at €1 billion, with a potential payout of €100 million available by 2023 – subject to undisclosed conditions.
Plans are to list Aker Horizons on the Oslo Stock Exchange later this year, setting up Mainstream’s anticipated initial public offering (IPO) in 2023. The funds raised could propel the joint entity to a dominant position in the global renewable energy landscape.
“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,” said Aker Horizons Chairman Øyvind Eriksen.
