Mitsui Buys Stake in Mainstream, Company Valued at EUR 2.1 Billion
Mitsui & Co., Ltd., part of Japan’s Mitsui Group, has agreed to invest EUR 575 million in Mainstream Renewable Power in the form of new common shares, corresponding to a 27.5 percent equity stake in the global renewable energy company.
Mitsui will take a long-term active role in the growth of Mainstream, alongside Aker Horizons, which will own 54.4 per cent of Mainstream following the transaction.
“We are delighted to participate in Mainstream jointly with Aker Horizons to boost growth and expansion of development and construction/operation activities of Mainstream, by leveraging our global business networks with customers across industries and its wide-ranged industrial capabilities, including deep expertise in the global power sector,” Kazumasa Nakai, Chief Operating Officer of Mitsui, said.
”We are convinced that the participation in Mainstream will further strengthen the strategic partnership between the Aker group and Mitsui, driving forward our renewable energy transition and greenhouse gas reduction in response to global climate change.”
This transaction values Mainstream at approximately EUR 2.1 billion on a 100 per cent basis.
Mainstream is a pure-play renewable energy company with a 14-year track record in developing, building and operating wind and solar generation assets across global markets, including in Latin America, Africa, and Asia-Pacific.
The company has delivered 6.5 GW of assets to financial close-ready including the Hornsea zone, the world’s largest offshore wind farm in operation today.
”Mitsui is the perfect partner for Mainstream to accelerate the company’s growth to become a renewable energy major,” Kristian Røkke, Chief Executive of Aker Horizons and Chairman of Mainstream, said.
”I have known Mitsui for many years and am certain that their rich industrial heritage, global presence and like-minded approach to sustainability will bring substantial value to Mainstream. We see Mainstream as an integral part of Aker Horizons’ plans to develop mega-scale green industrial hubs, drawing on synergies between Mitsui, the Aker Horizons portfolio and other strategic partners.”
Aker Horizons announced the acquisition of a 75 per cent stake in Mainstream in January 2021.
Since then, Mainstream has increased its global portfolio by 5.2 GW, bringing it to 16.6 GW; secured an investment decision from regional authorities for the first 200 MW of the 1.4 GW Phu Cuong Soc Trang offshore wind project in Vietnam; and acquired an initial 50 per cent ownership stake in an 800 MW floating offshore wind project in Japan, alongside with Aker Offshore Wind.
”There has never been a more critical time in the history of our planet to accelerate the global transition to renewable energy,” Mary Quaney, Group Chief Executive of Mainstream Renewable Power, said.
”Today’s transformational announcement reinforces Mainstream’s leadership position in the global race to net zero, as well as enabling nations to rapidly reduce their dependence on oil and gas imports through the large-scale deployment of renewables.”
The transaction will be completed as a private placement of common shares in Aker Mainstream Renewables AS, the holding company of Mainstream Renewable Power, towards Mitsui.
The closing of the transaction is expected in April 2022.
Mainstream’s founder, Eddie O’Connor, along with Irish retail investors, hold the remaining 18.1 per cent.
Mitsui, Aker Horizons, and Mainstream intend to continue developing Mainstream towards an initial public offering, although the transaction secures flexibility with regards to the timing of future funding of Mainstream, the companies said.
DNB Markets, a part of DNB Bank ASA, has acted as financial advisor and Advokatfirmaet BAHR AS has acted as legal advisor to Mainstream and Aker Horizons in connection with the transaction.
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