SYDNEY: AGL Energy Ltd (AGL.AX) said on Monday it will divest 19.9% of its 20% equity stake in Tilt Renewables to a consortium led by Queensland Investment Corporation (QIC) and the Future Fund for A$750 million ($480 million), in a move to recycle capital and support future growth.
The transaction, expected to close by the third quarter of fiscal 2026, will result in a gain on sale for AGL, which had valued the stake at A$321 million as of June 30. Proceeds will be used to fund flexible, dispatchable capacity and enhance balance sheet flexibility, the company said.
AGL will retain a 0.1% interest in Tilt and maintain its strategic partnership with the renewables firm, which supplies 1.6 gigawatts of generation capacity under long-term power purchase agreements. The companies recently expanded their collaboration with AGL committing to offtake 45% of output from Tilt’s Palmer Wind Farm and 100% from Waddi Wind Farm, both under 15-year terms.
“This transaction demonstrates our commitment to realising value in our portfolio and investing in firming capacity as we work towards our expanded 6GW target by FY30,” said AGL Managing Director Damien Nicks.
The deal is subject to regulatory approvals from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.