The deal will be done through QIC’s Powering Australian Renewables, a fund it runs on behalf of its own funds as well as AGL and the Future Fund.
The deal will cement its place as Australia’s biggest owner and operator of wind and solar generation with an installed capacity of 1313 megawatts across nine operating projects.
AGL, which owns 20 per cent of PowAR, will contribute $341 million to the deal.
The deal will be structured so that PowAR buys all the shares of Tilt at $NZ7.80, including those owned by Mercury and Mercury will, in turn, buy Tilt’s New Zealand assets for about $NZ770 million.
PowAR chair Cheryl Bart said Tilt’s assets were world-class and would complement the fund’s existing assets.
“We’re delighted to be able to work constructively with Tilt and Mercury NZ on this exciting opportunity, which is absolutely aligned to our mission of leading the transition to a decarbonised, decentralised and digitised energy system,” Bart said.
The deal will need the approval of NZ’s High Court and other regulatory approvals which were expected to take four months.
Infratil, which currently holds 65 per cent of Tilt, has agreed to vote all its shares in favour of the scheme.
Tilt’s Australian assets include the Dysart solar farm, near Mackay, as well as wind farms in Victoria, South Australia and NSW.
Australian Super had also approached Infratil last year to buy its stake in Tilt.
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