SYDNEY: Australia’s AGL Energy has agreed to sell nearly all of its 20% stake in clean energy developer Tilt Renewables for A$750mil (US$487mil), booking a big profit on the sale to its two existing government investment fund partners.
Tilt will now be wholly owned by vehicles led by Queensland Investment Corp (QIC) and Australia’s sovereign Future Fund.
The deal executes a sale process flagged in AGL’s August results, aimed at freeing up capital for investment in batteries and other fast-start energy projects that can support the grid when renewable output dips.
The transaction values AGL’s stake in Tilt, a wind and solar energy developer, well above its A$321mil book value as of June 30, and is expected to deliver a gain on the sale in 2026 earnings, the company said.
Shares in AGL, Australia’s top power producer, jumped as much as 2.8% to a one-week high after the announcement and were last up about 1%, outperforming a 0.5% rise in the benchmark S&P/ASX200.
The timing and pricing underscore strong demand for mature renewable assets, said Anna Wu, a cross-asset investment specialist at VanEck Australia.
The valuation was driven by “a supportive macro backdrop and rising electricity demand from artificial intelligence-driven data growth, which has boosted appetite for renewables,” she said, adding that AGL could now refocus capital on its core business and shareholder returns.
Tilt operates 1.9GW of wind and solar capacity with a pipeline exceeding 5GW. The sale consolidates Tilt under long-term infrastructure investors, aligning ownership with their investment horizon.
Before the deal, Tilt was owned 40% by QIC, 40% by Future Fund, and 20% by AGL.
While stepping back as an owner, AGL continues to source a significant portion of its renewable energy supply from Tilt under long-term power purchase agreements. — Reuters
