AGL in crisis as split set to be scrapped

It is believed that Mr Cannon-Brookes’ private firm Grok Ventures will immediately call for a more thorough renewal of the board and management ahead of any strategic review, even if Mr Hunt resigns, given the board’s unanimous backing of the split.

Grok, which owns 11.28 per cent of AGL and has said it will seek two board seats if the demerger fails, believes a strategic review would need to be carried out by a refreshed board. Grok may be open to working with Mr Botten on the appointment of a new independent chairman.Analysts warned that the failure of the demerger would be likely to depress AGL’s share price, potentially leaving it vulnerable to a cut-price takeover.

Fresh in the mind of many investors is that AGL’s board rejected two takeover proposals from Mr Cannon-Brookes and Canadian infrastructure heavyweight Brookfield only months ago, saying the prices proposed – $7.50 a share and $8 a share – significantly undervalued the company. Shares in AGL, which closed on Friday at $8.87, have recovered from 20-year lows of about $5.10 in November, amid a surge in wholesale electricity prices.However, AGL has been unable to take full advantage of soaring prices because of an outage at one unit at the 2210-megawatt Loy Yang plant due to an electrical fault. The unit could be offline until August 1, the company has advised.r, encouraging him to start preparing for the eventuality that the demerger plan collapses.

The tech billionaire reiterated his “unequivocal opposition” to the split, which he described as “deeply flawed” and which he says would slow the exit from coal power, which he says can be done by 2035.

Big energy corporates need to lead the clean energy future. Many have ripped us off economically and acted without social responsibility for decades.

AGL was already in crisis MCB just stopped them from making it worse 👍🏻

Mike Cannon-Brookes will be an excellent owner of AGL

I feel sorry for AGL shareholders, when their voice becomes meaningless because some rich dude wants to win.

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