AGL sells most of its Tilt stakes to QIC Future Fund for $487 Million

AGL Energy, Australia has agreed to sell 19,9% of its 20% stake to Tilt Renewables' clean energy developer for A$750m ($487.35m) to vehicles led Queensland Investment Corp and Australia's sovereign Future Fund.

The deal executes the sale process that is flagged on its

August Results

The goal is to free up capital that can be invested in fast-starting energy projects and batteries, which will support the grid if renewable production drops.

AGL shares rose 2.8% in early trading to A$9.17, a new one-week high. This outperformed a slight 0.2% increase in the benchmark index.

Tilt Australia was formed when Powering Australian Renewables, the AGL/QIC/Future Fund joint venture acquired Tilt’s Australian assets and rebranded it as Tilt in 2021.

Tilt Renewables

Tilt, before the deal, was 40% owned by QIC and 40% by Future Fund. It had 1.9 gigawatts of operating capacity and a pipeline with more than 5 GW, including the 1.3 GW Liverpool Range Project in New South Wales.

Tilt is now fully controlled by long-term investors in infrastructure, allowing it to be more aligned with their investment goals.

The company stated that the transaction valued AGL's initial stake in Tilt - a developer of wind and solar energy - well above its A$321m book value at June 30. It is expected to result in a profit on the sale by 2026.

Despite stepping down as an owner, the country's biggest power producer is still commercially linked to Tilt. The platform continues to provide a large portion of its renewable energy supply under long-term agreements for power purchases.

Included in these deals is a 15-year agreement for 45% output of the 396 megawatt Rye Park Wind Farm located in New South Wales.

AGL has committed to buying 45% of the output from the

Palmer Wind Farm

The company has an agreement for 15 years to buy 100% of the shares.

Waddi Wind Farm

Perth Energy is the company's Perth Energy business.

(source: Reuters)