Mitsui & Co., Ltd., part of Japan’s Mitsui Group, has agreed to invest 575 million euros (approximately RMB 4.034 billion) in Mainstream Renewable Power in the form of new ordinary shares, equivalent to Mainstream 27.5% stake in the company. Mainstream said the move would lay the groundwork for the company to become a “global renewable energy giant.”
Together with Aker Horizons, Mitsui Corporation will play a long-term active role in the development of Mainstream. After the transaction, Aker Horizons will hold a 54.4% stake in Mainstream.
Aker Horizons announced the acquisition of a 75% stake in Mainstream in January 2021.
Mitsui said that the stake in Mainstream will further strengthen the strategic partnership between the Aker Group and the Mitsui Group, and promote the two companies’ renewable energy transformation and reduction of greenhouse gas emissions to combat global climate change.
The transaction valued Mainstream at around 2.1 billion euros (on a 100% basis).
Mainstream is a renewable energy-focused company with a 14-year history of developing, constructing and operating wind and solar power generation assets worldwide, including in Latin America, Africa and Asia Pacific.
The transaction will be completed by way of a private placement of Aker Mainstream Renewables, the holding company of Mainstream, to Mitsui Corporation’s common stock. It is expected to be completed by April 2022.
After the transaction is completed, Mitsui Co., Ltd. will hold 27.5% of the shares of Mainstream; Aker Horizons will hold 54.4% of the shares; the founder of Mainstream Group and Irish retail investors will hold the remaining 18.1% of the shares.