Rest has announced that it has entered into an agreement to sell its 12.6 per cent stake in Endeavour Energy to a fund managed by Macquarie Asset Management (MAM).
The super fund originally acquired the stake back in 2017, when the NSW government sold a 50.4 per cent stake in Endeavour to a consortium that included funds and clients managed by MAM, Rest, British Columbia Investment Management, and the Qatar Investment Authority.
The energy company supplies electricity to 2.7 million people across Greater Western Sydney, the Blue Mountains, Southern Highlands, the Illawarra, and the south coast of NSW.
Rest chief investment officer Andrew Lill said that the divestment will enhance the financial interests of the fund’s members and is indicative of its disciplined approach to differentiated portfolio construction.
“The sale of our stake in Endeavour Energy will deliver a substantial uplift in value in comparison to when it was acquired six years ago and also more recent values,” he said.
“This is a high-quality business, and the agreement strongly recognises this quality. It’s an asset in the portfolio that has been a materially positive contributor to growing our members’ retirement savings through the cycle.”
Additionally, Mr Lill stated that the transaction reflects the $70 billion super fund’s dedication to seeking opportunities that attain real value for its 1.9 million members.
“The sale will also allow us to recycle funds into new private market opportunities, particularly those that also support the energy transition for the Australian economy, with the aim of delivering strong long-term returns for our members, of whom around a million are under the age of 30 and decades from retirement,” he said.
The fund is aiming to achieve a net zero carbon footprint by 2050. Rest indicated that it is continuing to invest domestically and internationally in assets that can contribute to the energy transition while also delivering strong performance in its portfolio.
“Rest is committed to investing in next generation infrastructure, including the planned expansion of our portfolio of renewable assets through Rest’s wholly owned Collgar Renewables platform,” Mr Lill concluded.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.