Norwegian funding large Aker introduced Tuesday it had taken a majority stake in Mainstream Renewable Energy, the worldwide wind and photo voltaic mission developer.
The transaction sees Aker’s cleantech funding subsidiary Aker Horizons paying 758 million euros (USD $919 million) for a 75 % stake in Mainstream, valuing the Dublin, Eire-based developer at €900 million ($1.1 billion).
Aker Horizons has additionally acquired a 50 % stake in superconducting cable techniques developer SuperNode.
The deal, which is predicted to shut within the second quarter of this yr topic to regulatory and different approvals, features a €100 million ($121 million) earn-out cost due in 2023 if Mainstream meets “sure milestones,” Aker mentioned in a press launch.
IPOs within the pipeline
Mainstream’s shareholders, which embody founder and chairman Dr. Eddie O’Connor, will reinvest within the enterprise and retain a 25 % possession of the corporate, mentioned Aker.
O’Connor is about to remain on as chairman of the board, which might be expanded with the addition of three Aker executives. The acquisition kinds a part of near-term plans to take Aker Horizons public on Euronext as a precursor to itemizing on the Oslo inventory trade, 180-year-old Aker revealed.
The fairness funding in Mainstream will assist the developer finance ongoing building tasks, mentioned Aker. The deal is without doubt one of the largest transactions in Aker’s historical past, mentioned president and CEO Øyvind Eriksen in a webcast.
“We are actually trying on the most strong basis in our industrial historical past,” he claimed. “Mainstream will unlock alternatives inside Aker’s already differentiated portfolio.”
Individually to the Aker Horizons preliminary public providing (IPO), there are plans to listing Mainstream throughout the subsequent three years.
“We began our fairness course of over a yr in the past and our ambition was to discover a new accomplice who shared our imaginative and prescient of the power transition,” mentioned Mainstream CEO Mary Quaney on the webcast.
“We intention to carry 5.5 gigawatts of tasks to monetary shut within the subsequent three years, and the plan is to carry the enterprise to IPO in that timeframe,” she added.
Kristian Røkke, CEO of Aker Horizons, confirmed the plans to listing Mainstream inside two to 3 years. “We see the general public markets as a pretty marketplace for progress capital,” he mentioned. “We see loads of investor curiosity for a corporation corresponding to Mainstream.”
Aker’s swelling low-carbon tech portfolio
The corporate, which is able to retain the Mainstream title after the acquisition, has 335 workers in 11 nations and has developed 6.four GW of renewable capability since 2008.
At present it has a 1.four GW portfolio of tasks in operation and beneath building, with a pipeline of 10 GW, together with 700 megawatts anticipated to succeed in monetary shut this yr, and one other 10 GW of recognized mission alternatives.
The operational tasks embody 22 % of all of the offshore wind capability within the U.Okay. Mainstream can also be the most important renewable power developer in Chile and the second largest in South Africa, Quaney mentioned.
The corporate is at the moment increasing in Vietnam, the place it’s growing a 1.four GW offshore wind farm that is because of begin producing energy in 2023.
Mainstream will now sit alongside different Aker Horizons holdings corresponding to Aker Carbon Seize and Euronext-listed Aker Offshore Wind, which is worried with deep-water and floating wind tasks.
SuperNode, in the meantime, might be transferred to Aker Horizon’s Dawn Portfolio, which focuses on rising applied sciences corresponding to clear hydrogen.
As revealed in GTM final yr, the corporate is seeking to develop superconducting cable techniques that may be capable of accumulate offshore wind effectively and export it to load facilities throughout Europe.