Mitsui, a Japanese trading company (part of the Mitsui Group), agreed to invest €575 million (~$631.9 million) in Mainstream Renewable Power, a renewable energy project developer, controlled by Norway’s Aker Horizons.
Following the transaction, Mitsui will hold a 27.5% share in Mainstream, Aker Horizons will hold 54.4%, Mainstream’s founder, Eddie O’Connor, and Irish retail investors hold the remaining 18.1%. This transaction values Mainstream at approximately €2.1 billion (~$2.3 billion) on a 100% basis.
Mitsui and Mainstream’s portfolios are in operation or under development in Latin America, Africa, and Asia. Mitsui will leverage its global business network across industries and its wide-ranging industrial capabilities, including global independent power producer (IPP) competence from 22 countries.
The transaction will be completed as a private placement of common shares in Aker Mainstream Renewables, the holding company of Mainstream Renewable Power, towards Mitsui, €575 million (~$631.9 million) in gross proceeds.
The closing of the transaction is expected in April 2022.
Mitsui’s investment and global business network will help Mainstream to speed expansion of its portfolio of wind and solar energy in the Americas, Africa, Asia-Pacific, and Europe. Mainstream said it would also expand battery storage, power trading, green ammonia, and green hydrogen production.
Mitsui, Aker Horizons, and Mainstream intend to continue developing Mainstream towards an initial public offering, although the transaction secures flexibility regarding the timing of future funding of Mainstream.
DNB Markets, a part of DNB Bank ASA, has acted as a financial advisor, and Advokatfirmaet BAHR AS has acted as legal advisor to Mainstream and Aker Horizons in connection with the transaction.
According to Mercom’s 2021 annual solar funding and M&A report, M&A activity in the solar sector doubled with 126 transactions in 2021 compared to 62 in 2020. 2021 recorded the highest number of M&A transactions since 2010. Solar Downstream companies led the M&A activity during 2021.