Herbert Smith Freehills Kramer (HSF Kramer) has advised AGL Energy Limited (AGL) on the divestment of 19.9% of its 20% stake in Tilt Renewables (Tilt) to existing shareholders and other entities led by the Queensland Investment Corporation and the Future Fund for A$750 million.
AGL and Tilt have formed a strategic partnership that will further both Tilt's expanding asset portfolio and AGL's decarbonisation strategy, with the partnership facilitating offtake opportunities for a share of Tilt's existing assets and its development pipeline.
Tilt currently provides 1.6 GW of renewable generation capacity to AGL under long term power purchase agreements. The partnership has been bolstered with AGL committing to take 45% of the generation from Tilt's Palmer Wind Farm for a 15-year term and 100% of the generation from its Waddi Wind Farm for a 15-year term.
AGL stated that the transaction demonstrates its commitment to realising value in its portfolio and working to reach its 6GW target of new firming and renewable projects by FY30.
The HSF Kramer team advising on the transaction was led by partner Nicole Pedler, with support from senior associate Marijana Banovac and solicitor Arda Reznikas. Partner Peter Davis advised AGL on its strategic partnership with Tilt.
Nicole Pedler said, "It has been a pleasure to work with AGL on this strategic transaction, which will help both AGL and Tilt continue their important work to develop renewable energy projects across Australia."
This transaction continues HSF Kramer's work with AGL: the firm has recently advised AGL on its acquisition of Tesla's South Australian Virtual Power Plant and the development of its Tomago BESS project, which will be located in the Hunter region of NSW.
This deal is the latest example of HSF Kramer's market-leading work in Australian M&A. Other recent examples include advising:
- BlackRock on its acquisition of StoreLocal
- Sayona Mining on its proposed $850m all-stock merger with Piedmont Lithium Inc and institutional placements
- Kinetic and its management team on the sale of a majority take to TPG
- Apiam Animal Health on its acquisition by Adamantem Capital
- One Investment Management on its proposed A$3.3 billion acquisition of Insignia Financial as part of a consortium including CC Capital
- Dropsuite on its A$420 million acquisition by NinjaOne
- MA Financial on its acquisition of specialist real estate investment manager IP Generation
- Chemist Warehouse on its A$34 billion merger with Sigma Healthcare
- Weir on its A$1.35 billion (£657 million) acquisition of mining software provider, Micromine
- The Carlyle Group Inc. on its acquisition of Waste Services Group
- Healius Limited on the sale of Lumus Imaging to Affinity Equity Partners for A$965 million