The renewable energy company is selling its largest windfarm in South Australia for $AU1.1 billion worth of shares and debt.
The Australian infrastructure investor Palisade and Australian superannuation fund First State Super will join forces to buy the windfarm, called Snowtown 2.
Tilt, which is majority owned by New Zealand companies Infratil and Mercury, launched a strategic review of its ownership of Snowtown 2 in June.
“The sale of Snowtown 2 is consistent with Tilt Renewables’ focus on delivering shareholder value from market opportunities and ensuring capital is available to execute near-term, high-value opportunities from its development pipeline,” Tilt chief executive Deion Campbell said.
“We are confident that Palisade has the experience and credentials to continue to successfully operate Snowtown 2 and maintain the strong relationships established with key project stakeholders.”
Tilt expects to pocket $AU455 million from the sale, after paying transaction costs.
Palisade and First State Super will buy all of the shares in Snowtown 2, and take on its existing debt.
Tilt expected Snowtown’s underlying profit to be between $AU118m and $AU122m in the year ended March.
Tilt is building two more windfarms, including a 31 turbine farm in south Taranaki, due to be completed early 2021.
When those are completed, and the sale of Snowtown 2 is finalised, Tilt will operate nine windfarms across Australia and New Zealand.