AGL could scrap demerger plans amid investor concern

AGL's Loy Yang Power Station (Latrobe Valley Energy Hub)
AGL's Loy Yang Power Station in the Latrobe Valley

AGL could scrap its controversial demerger plan to split from its coal-fired power stations amid concerns from investors.

The company is scheduled to put the demerger plans before an investor vote on June 15, with 75 per cent of shareholder votes needed to go ahead.

Related article: Cannon-Brookes settles 11.3% stake purchase in AGL

There are rumours of a strategic review, however, amid reports that a division into separate retail and generation units may not have enough support from shareholders.

This comes after Grok Ventures, owned by tech billionaire Mike Cannon-Brookes, purchased an 11.3 per cent stake in the company in hopes of stopping the demerger.

Super fund HESTA also recently announced it would be hesitant to support the demerger.

Related article: HESTA joins Cannon-Brookes in opposing AGL demerger

Cannon-Brookes, a renewable energy and now AGL’s biggest investor, previously attempted to take over the company in partnership with global asset manager Brookfield to fast-track AGL’s transition away from coal.

However, AGL rejected their $9 billion offer, choosing to steadfastly pursue its demerger plans. 

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