AGL Energy announced that it has decided to abandon its plan to demerge AGL Energy into AGL Australia and Accel Energy.
In a media release, the company revealed that while its board still believes a demerger is the “best path ahead,” that option is no longer considered viable.
“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,” reads the media release.
“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.”
In addition, and as a result of the decision to abandon the demerger plans, the company revealed that Chairman Peter Botten will resign from the Board.
Graeme Hunt will stand down as Chief Executive Officer and Managing Director and continue to serve as Chief Executive Officer and Managing Director until a new Chief Executive Officer and Managing Director are appointed.
Jacqueline Hey has resigned as a Non-Executive Director effective 30 May 2022.
Diane Smith-Gander will resign from the Board following the release of AGL’s FY22 full-year results in August.
“While the Board believed the Demerger Proposal offered the best way forward for AGL Energy and its shareholders, we have made the decision to withdraw it,” AGL Energy Board Chair Peter 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.
“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.”
Image credit: AGL facebook page
