AGL Energy mulls strategic review amid demerger doubts – report
SYDNEY (Reuters) – AGL Power Ltd may launch a strategic evaluation as early as Monday as doubts develop over the Australian energy producer’s plans to separate into two firms, the Australian newspaper reported.
AGL was mulling its choices on Sunday amid market hypothesis that breaking the corporate into retail and technology models might lack the shareholder assist to go forward, the newspaper mentioned.
AGL didn’t instantly reply to a Reuters request for remark.
One possibility was to launch a strategic evaluation that might enhance the probabilities of AGL being offered off, the Australian reported, citing unnamed sources.
AGL’s board was to fulfill on Sunday afternoon to find out subsequent steps, with a choice potential on Monday, the report mentioned.
Shareholders are set to vote on June 15 on AGL’s demerger plan. The break up would type AGL Australia, which might be the nation’s prime power retailer, and Accel Power, the nation’s prime energy producer.
Expertise billionaire Mike Cannon-Brookes indicated on Friday he would search two seats on AGL’s board if the plan to separate the corporate failed.
In a letter addressed to AGL Chair Peter Botten, Cannon-Brookes criticised the demerger plan and expressed his intention to nominate two nominees for Grok Ventures – a car he owns – to the AGL board.
Cannon-Brookes, the co-chief govt of software program agency Atlassian and a vocal local weather activist, gained an 11.3% stake in AGL this month by changing a part of his derivatives-based holding within the firm. He failed in a takeover try with Brookfield Asset Administration earlier this yr.
Australian pension fund HESTA beforehand joined the tech billionaire in opposing the demerger, saying it didn’t see the break up supporting decarbonisation targets laid out by the Paris local weather settlement.
Accel, if the demerger goes forward, will inherit AGL’s coal-fired energy vegetation and the mantle of Australia’s largest carbon emitter, in keeping with authorities knowledge.
(Reporting by Samuel McKeith; Modifying by William Mallard)
