Future Fund, QIC to buy most of AGL’s stake in Tilt Renewables for $750m
Make us a preferred source
Make us a preferred source on Google
The news: Energy generator and retailer AGL has agreed to sell almost all of its equity stake in Tilt Renewables to existing shareholders the Queensland Investment Corporation and the Future Fund in addition to other entities led by them.
The numbers: AGL has agreed to sell 19.9% of its 20% equity stake for $750 million.
When the transaction is completed, QIC will have a 99.9% managed interest in Tilt through its managed funds and clients, which includes the Future Fund.
The energy company said that its investment in Tilt had a carrying value of $321 million as at 30 June 2025. The transaction is expected to yield a gain on sale in FY26, with the total gain to be determined at close.
Tilt currently provides 1.6GW of renewable generation capacity to AGL under long-term power purchase agreements, with AGL recently committing to 45% offtake from Tilt’s Palmer Wind Farm over 15 years and 100% from Waddi Wind Farm over 15 years.
The context: The deal is expected to be completed in Q3 FY26.
AGL said the transaction reflects the company’s “disciplined use of its balance sheet” and is “recycling capital” to invest in “flexible, dispatchable capacity and to provide additional balance sheet flexibility”.
The transaction also includes a strategic partnership between AGL and Tilt which will facilitate further “offtake opportunities for a share of Tilt’s existing assets and its development pipeline”.
What they said: “We look forward to continuing to work with Tilt, QIC and the Future Fund as Tilt delivers its development pipeline,” AGL managing director Damien Nicks.
“The transaction demonstrates our commitment to realising value in our portfolio and recycling capital to invest in flexible, dispatchable capacity as we work towards our expanded 6GW target of new firming and renewable projects by FY30.”
