Aker Horizons — M&A Activity 2022

Jul 18, 2022

Mainstream Renewable Power Signs Agreement for the Sale of African Renewable Energy IPP

Mainstream Renewable Power Signs Agreement for the Sale of African Renewable Energy IPP

· Mainstream Renewable Power and Actis have signed an agreement to sell Lekela

Power ("Lekela"), Africa's largest pure-play renewable energy independent power

producer, to Infinity Group and Africa Finance Corporation ("AFC")

· This planned exit reflects the successful culmination of Mainstream and

Actis' partnership strategy for Lekela, with the platform consisting of a

leading management team, over 1 GW of fully operational assets, and significant

growth prospects.

18 JULY 2022 - Mainstream Renewable Power ("Mainstream"), the global wind and

solar company majority-owned by Aker Horizons, and Actis, a leading global

investor in sustainable infrastructure, have signed an agreement to sell the

Lekela Power platform to Infinity Group and AFC, subject to regulatory approvals

and customary closing conditions.

The transaction is expected to generate net proceeds to Mainstream of

approximately USD 90 million, subject to certain closing adjustments, with the

transaction valued at an enterprise value of approximately USD 1.5 billion.

Closing of the transaction is expected to occur later in the year.

Established in 2015 to deliver clean, reliable energy across Africa, Lekela has

become the African continent's largest pure-play renewable energy Independent

Power Producer (IPP). The platform consists of over 1 GW of fully operational

wind assets, including five operational wind farms in South Africa (624 MW), one

operational wind farm in Egypt (252 MW), one operational wind farm in Senegal

(159 MW) as well as development opportunities in Ghana, Senegal and Egypt.

The platform was established as a joint venture between Actis (60 percent), and

a Mainstream-led consortium called Mainstream Renewable Power Africa Holdings

("MRPAH") (40 percent).

The planned exit reflects the successful culmination of the parties' partnership

strategy for Lekela, following a comprehensive value creation approach.

"There has never been a more critical time to accelerate the global transition

to renewable energy, for the health of both our planet and our communities,"

said Mary Quaney, Group Chief Executive, Mainstream Renewable Power. "Much of

Africa is acutely vulnerable to climate change and we are proud to have worked

with Actis, as well as the communities, governments, project lenders, equipment

suppliers and contractors across Africa, to deliver over 1 GW of operational

wind power that will continue to have a positive impact for decades to come."

Our vision is of a world electrified by renewable energy. Together with our

strategic shareholders Aker Horizons and Mitsui, we are well positioned to lead

and truly accelerate the transition to renewables in South Africa, across the

African continent and in markets globally," said Quaney.

In June, Mainstream and Actis announced the completion of the sale of its

Chilean joint venture, Aela Energía, to the Canadian-listed developer Innergex

Renewable Energy. The Aela Energía transaction was another milestone for

Mainstream in accelerating and delivering the transition to renewable energy.

--ENDS--

For further information, please contact:

Ivar Simensen, Communications, Aker Horizons

Tel: +47 46402317, ivar.simensen@akerhorizons.com

Emmet Curley, Communications, Mainstream Renewable Power

Tel: +353 86 2411 690

emmet.curley@mainstreamrp.com

Elizabeth Adams, FTI Consulting

Tel: +44 7974 982331

About Lekela Power

Mainstream has a net ownership in Lekela of 13.52%, through its stake of 33.8%

in MRPAH.

The Lekela platform is owned by Actis (60%) and a Mainstream-led consortium

(40%) called

Mainstream Renewable Power Africa Holdings ("MRPAH") comprising: Mainstream

Renewable Power, IFC, the IFC African, Latin American and Caribbean Fund (ALAC)

and the IFC Catalyst Fund, two funds managed by IFC Asset Management Company,

Rockefeller Brothers Fund, Ascension Investment Management and Sanlam.

About Mainstream Renewable Power

Mainstream Renewable Power is a leading pure-play renewable energy company, with

wind and solar assets across global markets, including in Latin America, Africa,

and Asia-Pacific. Mainstream is one of the most successful developers of

gigawatt-scale renewables platforms, across onshore wind, offshore wind, and

solar power generation. It has successfully delivered 6.5 GW of wind and solar

generation assets to financial close-ready and has a global development

portfolio of 27 GW.

About Aker Horizons

Aker Horizons develops green industrial projects and technologies that

accelerate the net zero transition. The company holds assets across renewable

energy and carbon capture, and develops green industrial hubs that combine low

-cost renewable energy with hydrogen production and downstream applications. As

part of the Aker group and its 180-year industrial heritage, Aker Horizons

applies industrial, technological and capital markets expertise to solve

fundamental challenges to sustainable existence. Aker Horizons is listed on the

Oslo Stock Exchange and headquartered in Fornebu, Norway. Through its portfolio

companies, Aker Horizons employs over 1,200 people across 18 countries and five

continents. www.akerhorizons.com.