Norway

Norway

Aker Offshore Wind set to combine with Mainstream Renewable Power

Aker Horizons announces plan to take offshore wind developer private and combine with renewables firm

Aker Offshore Wind CEO Philippe Kavafyan said the deal would help global deployment of offshore wind and green hydrogen projects (pic credit: Vestas)
Aker Offshore Wind CEO Philippe Kavafyan said the deal would help global deployment of offshore wind and green hydrogen projects (pic credit: Vestas)

Investment company Aker Horizons plans to combine Aker Offshore Wind with Mainstream Renewable Power to unlock improved financing and increase growth.

Aker Horizons – which owns Aker Offshore Wind and 51.02% of Mainstream – intends to vote in favour of the plans at its upcoming annual general meeting, which it plans to hold on 4 May.

It intends to merge with Aker Offshore Wind, by buying the remaining shares in the company for just over NOK 10 billion (€1 billion), and then reposition the offshore wind developer as its 100% privately owned subsidiary. 

The renewables investor would then combine Aker Offshore Wind with its portfolio company Mainstream Renewable Power. 

A spokesman told Windpower Monthly that it is yet to be determined whether Aker Offshore Wind will be merged with Mainstream or just share competencies with the Irish-founded developer.

Aker Horizons explained that Aker Offshore Wind and Mainstream have complementary footprints and capabilities and said the merger should increase scale and improve access to financing for Aker Offshore Wind projects. The move should create an industrially and financially stronger offshore wind developer, a spokeswoman explained.

It expects the merger to yield significant synergies in growth regions such as Asia-Pacific – where Aker Offshore Wind is developing projects off South Korea and Japan, and where Mainstream is developing projects off Japan and Vietnam. Both companies are also developing projects in the US and Northern Europe, where Aker Offshore Wind is developing projects off Norway.

Philippe Kavafyan, Aker Offshore Wind’s CEO, said: “We are confident that this transaction will enable us to utilise the full technology and engineering capabilities of our group to combine the deployment of commercial scale floating wind and hydrogen around the world.”

Aker Horizons and Aker Offshore Wind have carried out due diligence reviews of business, financial, commercial and legal information related to their respective businesses, they stated.

Completion of the merger is subject to closing conditions, such as approval from Aker Offshore Wind shareholders and Aker Horizons’ board of directors, and the companies aim to complete the deal by June.

In a parallel move, Aker Horizons has announced plans to reposition green hydrogen company Aker Clean Hydrogen as a privately held subsidiary to strengthen the company’s capabilities in hydrogen production and large-scale decarbonisation projects.

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