The Norwegian majority shareholder of Dublin-based Mainstream Renewables Power has decided to merge the company with an offshore wind unit he owns to create a group worth around 2.3 billion euros as continues to prepare for an initial public offering (IPO).
Oslo-listed Aker Horizons, part of industrial investment giant Aker Group, said on Tuesday that its 54.4%-owned Mainstream unit would combine with its 100%-owned Aker Offshore Wind business, subject to the approval Friday by the shareholders of the Irish unit. The deal is expected to close next month.
The expanded Mainstream business will have a 27 gigawatt (GW) portfolio of fixed and floating solar, onshore wind and offshore wind projects in Latin America, Africa, Asia Pacific and Europe. These range from projects in planning and development to assets under construction and in operation.
For context, the current peak demand for the entire power system on the island of Ireland is around 5.5 GW.
“The strong industry logic to combining Aker Offshore Wind and Mainstream includes complementary footprint and capabilities, increased scale and better access to financing,” said Mary Quaney, Chief Executive Officer of Mainstream.
Mainstream, founded in 2008 by Irish renewables entrepreneur Eddie O’Connor, was taken over by Aker Horizons early last year in a deal that values the business at $1 billion. euros. The deal allowed Mr O’Connor and a group of long-time wealthy Irish investors to reinvest some of the proceeds to retain a 25% stake in the business.
Aker Horizons said when announcing the investment in January 2021 that the goal was to launch a Mainstream initial public offering (IPO) within two to three years of the transaction.
Japanese conglomerate Mitsui invested 575 million euros in the company in April for a 27.5% stake. Figures contained in an Aker Horizons investor presentation on its website suggest that Aker Offshore Wind will represent less than 9% of the total value of the enlarged group.