Aker ASA announced that it has acquired Mainstream Renewable Power through its investment subsidiary Aker Horizons. For the sum of 900 million euros, the Norwegian investment company has just acquired 75% of the capital of a major player in renewable energy.
Aker ASA also acquires shares in SuperNode
The acquisition of 75% of Mainstream Renewable Power
Aker ASA and its subsidiary Aker Horizons have acquired 75% of Mainstream Renewable Power for approximately €900 million. The president and founder, Dr. Eddie O’Connor retains his status as Chairman of the Board. At the same time, Kjell Inge Røkke, Øyvind Eriksen, and Kristian Røkke (Presidents and CEOs of Aker ASA and Horizons) will also become members.
This agreement was financed largely by bank facilities provided by DNB Bank Asa and Nordea Band Apd. Aker ASA and Aker Horizons participated in the acquisition of the company for 248 and 110 million euros respectively.
Accompanied by 50% of the company SuperNode
The agreement also includes the acquisition of 50% of SuperNode, a company specialized in superconducting cables. The technologies developed by this 2018-founded company are particularly interesting for connecting offshore wind and the market. Finally, an additional payment of 100 million is planned for 2023, if certain targets are met.
Mainstream Renewable Power: the first step towards a 10GW ambition for Aker ASA
6.4GW worldwide for Mainstream Renewable Power
Mainstream Renewable Power is an independent, global player in renewable energy. Created in 2008, the company has developed 6.4GW of renewable energy capacity. It also participates in projects with global players. For example, it is one of the most successful offshore wind developers, accounting for 22% of the UK’s offshore wind farm.
It is also one of the biggest independent developers in the Chilean market, but also in the African continent, especially in South Africa. The company also has 700MW of projects scheduled to come on stream in 2021 and a cash balance of more than 500 million euros. In total, Mainstream Renewable Power employs 335 people across 11 countries.
A 10GW target for Aker Horizons
This acquisition of Mainstream Renewable Power reflects a new strategy for Aker ASA. By acquiring a renewable energy player, the company is taking a step towards the energy transition. Kristian Røkke even talks about a “political investment for the planet”.
Aker Horizons’ stated objective is to develop industrial companies representing 10GW in the field of renewable energy. The company says it wants to eliminate 25 million tons of CO2 per year by 2025. This acquisition gives Aker ASA access to Mainstream Renewable Power’s expertise in renewable energy, which will help it to meet its objectives.
1.4GW already in operation or under construction
The acquisition is accompanied by the acquisition of 1.4GW in operation or under construction, mainly in Chile and South Africa. The company will also have approximately 10GW of projects under development. All this confirms Aker ASA’s strategy to move towards the production of renewable energy.
For its part, Mainstream Renewable Power wishes to continue its international development. CEO Mary Quaney says she wants to make the company “one of the world’s leading renewable energy companies.” To do so, the company will need Aker ASA’s financing, but also its experience in the development of industrial companies.
A perspective of massive investments in renewable energies
Following this acquisition, Aker ASA issued an internal restructuring plan. In sum, Aker Horizons becomes the subsidiary in charge of investing in the renewable energy market. In this sense, the company recovers shares from other subsidiaries of the group such as Aker Carbon Capture or Aker Offshore Wind.
Finally, the acquisition of Mainstream Renewable Power by Aker ASA opens up the prospect of massive investments in renewable energy. It is part of the growing interest of companies in the energy transition.