Norway's Aker Horizons to take 75% stake in Mainstream Renewable Power (updated)

Aker Carbon Capture ASA

19/01/2021 10:06

(Adds detail)
    By Susanna Twidale and Victoria Klesty
    OSLO/LONDON, Jan 19 (Reuters) - Norway's Aker Horizons,
owned by investment firm Aker  AKER.OL , will acquire a 75%
stake in Mainstream Renewable Power in a deal that values the
wind and solar company at up to 1 billion euros ($1.21 billion),
the companies said on Tuesday.
    Mainstream has developed several wind and solar projects
including Britain's Hornsea 2 offshore wind project before
selling it in 2015.
    The deal values Mainstream at 1 billion euros, when
including a potential payout of up to 100 million euros in 2023,
which depends on the company's performance. 
    "Through the acquisition of Mainstream, Aker Horizons will
gain a platform to drive forward its renewable energy ambitions
and position itself in a growing market for hybrid projects,"
Aker Horizons CEO Kristian Roekke said in a statement.
    Aker, traditionally focused on oil and gas, has launched new
businesses focusing on carbon capture and storage (CCS) and
offshore wind, while at the same time remaining the top owner in
oil firm Aker BP  AKERBP.OL  and oil services firm Aker
Solutions  AKES.OL .  urn:newsml:reuters.com:*:nO9N28G02M
    Aker ASA shares were up 7.3% by 0938 GMT, outperforming a
0.9% rise in Oslo's benchmark index.
    Mainstream said the investment would help accelerate its
plans to bring 5.5 gigawatts (GW) of renewable projects to
financial close by 2023 ahead of a planned IPO.
    "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,"
Mainstream founder Eddie O’Connor said in a statement.
    As part of the transaction, expected to close in the second
quarter of 2021, Aker Horizons will also acquire 50% of
superconducting technology company Supernod, Aker said. 
    Mainstream has 1.4 GW of onshore wind and solar assets
primarily in Chile and South Africa in operation or under
construction, a pipeline of 700 MW in projects expected to reach
financial close in 2021, and more than 9 GW in other development
assets, Aker said.


($1 = 0.8249 euros)

 (Reporting By Susanna Twidale in London and Victoria Klesty in
Oslo;
Editing by Robert Birsel)
 ((susanna.twidale@thomsonreuters.com; +44 207 5424753;))