Mainstream Renewable Power launched sale of stakes in Chilean subsidiary

Mainstream Renewable Power has launched the search for an equity partner to help build and run $1.65 billion of wind and solar plants in Chile. It has commissioned KPMG to seek expressions of interest for a partner in its wholly-owned 1,300-megawatt Andes Renovables Chilean platform.

It is understood that Mainstream is seeking to sell only a stake in the Chilean platform and is committed to building out its projects there. The company won contracts benefiting from power purchase agreements from the Chilean government two years ago to develop and run the wind and solar plants.

The platform consists of three portfolios, the first of which, amounting to 550 megawatts of mainly wind projects, is expected to come to financial close by the end of next March, when all the funding is in place. The other two are expected to reach financial close later in 2019.

Mainstream confirmed in its recent shareholder letter that it will proceed with a grey market for its shares later this year, and that the company sees its shares as being worth up to €11.70 each, after a planned buyback of stock owned by legacy investors Barclays and Japan’s Marubeni.