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LGI Limited (ASX:LGI)

ALERT: Price-sensitive ASX Announcement for LGI
Current share price for LGI : $2.360 0.415 (21.34%)+
Announcement
Release
6 Oct 2026 8:21AM
Price at Release
$1.945
Full Release
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Summary
LGI Limited’s 6 October 2026 acquisition presentation outlines the purchase of 100% of Maryrorough Solar Pty Ltd (Brigalow) and 100% of Chinchilla Solar Pty Ltd from IIG Solar Assets Pty Ltd as trustee for The IIG Solar Asset Trust for $22.0 million debt-free, adding 42MWac of solar generation assets on leased land to LGI’s renewable energy portfolio. The assets comprise Brigalow Solar Farm in Yarranlea, Queensland with 34.5MW installed and 27.3MW export capacity, and Chinchilla Solar Farm in Baking Board, Queensland with 19.9MW installed and 14.7MW export capacity; both are currently 100% spot exposed, have more than 30 years remaining on their leases, and generated a combined 54,210MWh in calendar 2025. LGI says the acquisition complements its landfill biogas, battery and carbon abatement platform, lifts its medium-term strategic pipeline to over 120MW of distributed renewable and dispatchable capacity, and supports its strategy to build scale in the National Electricity Market using lower-cost, distribution-connected projects that can be optimised through its Dynamic Asset Control System. The company expects estimated annual EBITDA contribution of $2.1 million to $4.0 million at current electricity prices, with FY27 EBITDA of about $1.6 million assuming a nine-month contribution, funded through cash at bank and undrawn existing debt facilities, while maintaining a target of net debt to EBITDA below 2x.
Key Points
  • LGI Limited announced the acquisition of 42MWac of solar generation assets on 6 October 2026.
  • The company will acquire 100% of Maryrorough Solar Pty Ltd and 100% of Chinchilla Solar Pty Ltd from IIG Solar Assets Pty Ltd ATF The IIG Solar Asset Trust.
  • The purchase price is $22.0 million with no associated debt.
  • Completion is scheduled for 9 October 2026 with no shareholder approval required and no remaining material conditions.
  • The acquisition is funded using cash at bank and undrawn funds from LGI’s existing debt facility.
  • The assets acquired are Brigalow Solar Farm with 27.3MW export capacity and Chinchilla Solar Farm with 14.7MW export capacity.
  • Brigalow has 34.5MW installed capacity, commenced commercially in 2021, has 33 years remaining on its lease and generated 33,229MWh in 2025.
  • Chinchilla has 19.9MW installed capacity, commenced commercially in 2019, has 31 years remaining on its lease and generated 20,981MWh in 2025.
  • Both solar farms operate on a 100% spot exposed basis.
  • LGI expects the acquisition to contribute estimated annual EBITDA of $2.1 million to $4.0 million at current electricity prices.
  • FY27 EBITDA contribution is estimated at about $1.6 million assuming a nine-month contribution.
  • LGI said the deal advances its strategy to develop and operate a diverse renewable energy platform at scale.
  • The acquisition expands LGI’s medium-term strategic pipeline to more than 120MW including 80MW of high conviction projects plus the new solar assets.
  • LGI views the solar assets as complementary to its landfill biogas, battery and carbon abatement platform.
  • The company intends to apply its Dynamic Asset Control System to optimise dispatch and price outcomes across the acquired assets.
  • The excess installed solar capacity above network export limits may support future battery energy storage system hybridisation.
  • LGI highlighted that the assets were priced below greenfield development cost for comparable assets.
  • The presentation positions distributed renewable projects as a faster and lower-impact alternative to delayed utility-scale generation and transmission upgrades in Australia.
  • LGI stated it will maintain capital discipline with a target of net debt to EBITDA below 2x through the portfolio build-out.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.