Eddie O'Connor to make initial €550m from sale of Mainstream Power

Norwegian renewable investment company Aker Horizons has agreed to buy 75% of Irish energy firm, which was founded by former Airtricity and Bord na Móna boss

Eddie O'Connor's Mainstream Renewable Power is set to be taken over by Norwegian investment firm Aker.

Former Airtricity and Bord na Móna boss Eddie O’Connor is set to make an estimated initial €550m from the sale of his Irish energy company Mainstream Renewable Power.

Norwegian renewable investment company Aker Horizons has agreed to buy 75% of Mainstream in a deal valuing the Irish company at €1bn. 

The deal is subject to regulatory approval and is expected to complete during the second quarter of this year. Its value includes the investment and a potential €100m earning in two years depending on performance.

Mainstream has onshore and offshore wind and solar assets in Chile, Australia, South Africa, and other parts of Latin America and the Asia-Pacific region.

The company will continue operating under its current brand and its current management team. Mr O’Connor, who formed the company in 2008, will remain as chairman.

He currently owns an estimated 55% of Mainstream, a stake valued at around €550m by this deal. 

Mr O’Connor intends to reinvest in the company and will own an as yet unknown part of the 25% of Mainstream not being bought by Aker. All existing shareholders will have the opportunity to reinvest in the company.

Aker Horizons is expected to be floated on the stock market within the next 12 months, and is expected planning to float Mainstream within three years.

Mainstream chief executive Mary Quaney said the deal puts the company “firmly on track to becoming one of the world’s first pure-play renewable energy majors".

Mr O’Connor said the Norwegian deal is “the crucial next step” in Mainstream’s bid to lead the transition to renewable energy and eliminate CO2 emissions.

"It means we can widen our scope for entry into new markets and further deepen and expand our leadership position in existing ones," said Mr O'Connor.