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Mainstream CEO says IPO not the best plan - report

Knockaneden wind farm, Ireland. Photo by: Mainstream Renewable Power.

September 10 (Renewables Now) - The CEO of Ireland’s Mainstream Renewable Power, which has recently informed investors about plans to boost liquidity, says the company is much more attractive for trade and strategic buyers than stock market investors.

Chief executive Andy Kinsella told The Irish Times that Mainstream would more likely be sold on at the end of the decade or the early 2020s than complete an initial public offering (IPO). He explains that the renewables developer’s lack of long-term repeatable revenue streams and its presence in both emerging and developed markets confuse investors.

The comments by the CEO follow a recent letter to shareholders in which the company says it is committed to maximising shareholder value, whilst providing liquidity for all shareholders through a sale of some or all of Mainstream's business. The letter, quoted by local media, also mentions that the company has prepared a grey market plan and that it would be buying back EUR 25 million (USD 29m) of shares from existing investors other than Barclays and Marubeni.

The Irish Times report also mentions that Mainstream expects to sell its Chilean joint venture with investment firm Actis by the end of 2019 and its African joint venture, Lekela Power, by the end of 2020. Last week The Irish Times reported that Mainstream had hired an advisor to find an equity partner for its fully-owned 1.3-GW Andes Renovables Chilean platform.

(EUR 1.0 = USD 1.157)

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Browse all articles from Ivan Shumkov

Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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