AGL Energy’s 20% stake in Tilt Renewables looks likely to be sold to existing shareholders, according to multiple sources.

This news service first reported the possible sale of AGL’s Tilt interest on 5 March, adding on 6 May that Bank of America was advising on the process, which could also include a QIC stake.

In its annual result briefing this month, the Australian generator and retailer confirmed that it plans to launch a sales process this financial year.

The sources said that they expect the formal sale to be launched in mid- to late-September. In the meantime, existing shareholders are waiting for pre-emptive notices and running their numbers on the sale, they added.

In addition to AGL, Tilt is 40% owned by QIC and 40% owned by the Future Fund. QIC’s underlying investors are Aware Super, Brighter Super (formerly LGIASuper), Hostplus, MLC and Telstra Super, which is exploring a merger with Aware.

Some of the investors acquired their stakes through QIC Global Infrastructure Fund I and others are co-investors. The co-investors can exercise pre-emptive rights independently of QIC, one of the sources said.

Tilt is one of Australia’s largest renewables developers and operators with 11 solar and wind farms generating a collective 1.8 GW and a further 100 MW under construction, according to the company website.

In 2021, New Zealand’s Mercury and the Powering Australian Renewables (PowAR) fund bought Tilt from NZX-listed Infratil for an enterprise value of AUD 3.3bn and the business was split between New Zealand, which Mercury took, and Australia, which PowAR retained.

PowAR, which was owned by AGL, QIC and the Future Fund, was later rebranded as Tilt Renewables.

More recently, AGL has said that it does not want to own renewables generation assets, preferring instead to buy their green electrons through power purchase agreements.

The gentailer confirmed in June that it was “conducting preliminary investigations about its interest in Tilt”. An AGL spokesperson referred back to that statement when contacted for comment.

Spokespeople at QIC, the Future Fund, Aware, Brighter Super, Hostplus, MLC Super and Telstra Super either declined to comment or did not respond to requests for comment.