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May 30, 2022

AGL Energy abandons demerger proposal for coal power business

AGL chairman Peter Botten and CEO Graeme Hunt have resigned from their positions following the decision.

Australian power generation company AGL Energy has abandoned plans to demerge its coal-fired power generation business, yielding to pressure from top shareholder Mike Cannon-Brookes.

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In a statement, the company said that although its board continues to believe that the demerger was the ‘best way forward’, this option is no longer thought to be available.

AGL Energy said: “AGL Energy believes that the demerger proposal would have been supported by a majority of shareholders, both retail and institutional, many of whom are long term holders of AGL Energy shares.

“However, having regard to anticipated voter turnout and stated opposition from a small number of investors, including Grok Ventures, AGL Energy believes the demerger proposal will not receive sufficient support to meet the 75% approval threshold for a scheme of arrangement.”

Grok Ventures is the private investment vehicle of Mike Cannon-Brookes, the co-founder of Atlassian. The billionaire investor holds an 11.3% share in AGL Energy through Grok Ventures.

Following the decision, AGL chairman Peter Botten and CEO Graeme Hunt have decided to resign from their positions. 

Botten said: “The board will now undertake a review of AGL’s strategic direction, change the composition of the Board and management, and determine the best way to deliver long-term shareholder value creation in the context of Australia’s energy transition.”

In addition, AGL announced that two other board members, Jacqueline Hey and Diane Smith-Gander, will also leave the company.

Botten added: “On behalf of the board, I would like to thank Jacqueline Hey, who is leaving the Board today, for her significant contribution to AGL Energy, including as Chair of the Safety, Customer and Corporate Responsibility Committee.”

Following the withdrawal of the demerger proposal, AGL’s board will review its strategic direction.

The board will also consider the analytical work created for the demerger proposal and will issue a detailed assessment of the strategic plans that were developed for AGL Australia and Accel Energy and their roles in the energy transition.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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