Mainstream to receive €89m for minority stake in African joint venture – The Irish Times

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Dublin-based Mainstream Renewable Power and UK private equity firm Actis have agreed to sell Lekela Power, the African wind energy joint venture they set up seven years ago, in a deal that will will generate a net amount of 90 million dollars (88.8 million euros) for the Irish. remaining 15.5% stake in the company.

The enterprise value of the sale to Egyptian renewable energy group Infinity and Africa Finance Corporation, including equity and debt, is $1.5 billion.

Created in 2015, Lekela, a theater play on cheile, Irish for together, has become Africa’s largest pure-play independent renewable power producer with 1,000 megawatts (MW) of fully operational wind assets in South Africa, Egypt and Senegal. It also has development opportunities in Ghana, Senegal and Egypt.

Actis retained a 60% stake throughout the life of the joint venture, while Mainstream’s stake was reduced from 40% to 15.5% in 2016 by bringing in a group of co-investors, including the Rockefeller Brothers Fund and the International Finance Corporation. , member of the World Bank.

Meanwhile, Mainstream, which was founded in 2008 by Irish renewables entrepreneur Eddie O’Connor, was taken over by Norway’s Aker Horizons early last year as part of a an agreement valuing this activity 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.

Former Irish investors’ stake is set to be diluted to 16.5% following Mainstream’s recent acquisition of new investments from Japan’s Mitsui as well as a plan by Aker Horizons to merge Mainstream with another portfolio company, Aker Offshore Wind.

The ultimate goal is to take Mainstream, led by chief executive Mary Quaney, public in the coming years.

“There has never been a more critical time to accelerate the global transition to renewable energy, for the health of our planet and our communities,” Ms Quaney said.

“Much of Africa is extremely vulnerable to climate change and we are proud to have worked with Actis, as well as with communities, governments, project lenders, equipment suppliers and contractors across Africa, to provide more than one[gigawattofoperationalwindpowerthatwillcontinuetohaveapositiveimpactfordecadestocome”[gigawattd’énergieéolienneopérationnellequicontinuerad’avoirunimpactpositifpourlesdécenniesàvenir[gigawattofoperationalwindpowerthatwillcontinuetohaveapositiveimpactfordecadestocome”

In June, Mainstream and Actis announced the completion of the sale of their Chilean joint venture, Aela Energía, to Canadian developer Innergex Renewable Energy.

The deal with Lekela is expected to close later this year, subject to various regulatory approvals.

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