Australian tech billionaire Mike Cannon-Brookes’ firm Grok Ventures has settled a 11.28 per cent stake purchase in AGL Energy worth $650 million with J.P. Morgan, according to Reuters.
Cannon-Brookes, the co-CEO of software firm Atlassian and a vocal climate activist, had gained the AGL stake earlier this month by converting a part of his derivatives-based holding in the company, having failed in a takeover attempt with Brookfield Asset Management.
Related article: Cannon-Brookes takes 11% stake in AGL to stop demerger
AGL is looking to split into two companies called Accel and AGL Australia following a 75 per cent slump in the group’s value over the past five years, hammered by an influx of cheap solar and wind power and government pressure on utilities to slash power prices to households.
The stake purchase by Cannon-Brookes was aimed at blocking the country’s biggest power producer and polluter from going ahead with the demerger—one of which would be a bulk power generator and the other a carbon-neutral energy retailer.
AGL’s plan needs 75 per cent of votes cast to be in its favour to pass. With Cannon-Brookes holding 11.28 per cent of the shares, only a further 14 per cent would be needed to oppose the split and block the demerger.
The billionaire’s investment company said in a statement it had instructed JPM to carry out a series of trades to “simplify” its interest in AGL by converting them into physical shares.
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“Grok is confident they will be able to vote the full 11.28 per cent at the relevant time, against the demerger,” the company’s spokesperson said.
The shareholder’s vote on AGL’s proposed demerger is due on June 15.
