AGL Power mulls strategic overview amid demerger doubts – report

The brand of AGL Power Ltd, Australia’s no.2 energy retailer, adorns the constructing of their head workplace in Sydney, Australia, February 8, 2017. Image taken February 8, 2017. REUTERS/David Grey/File Picture

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SYDNEY, Might 29 (Reuters) – AGL Power Ltd (AGL.AX) may launch a strategic overview as early as Monday as doubts develop over the Australian energy producer’s plans to separate into two firms, the Australian newspaper reported.

AGL was mulling its choices on Sunday amid market hypothesis that breaking the corporate into retail and era models might lack the shareholder help to go forward, the newspaper mentioned.

AGL didn’t instantly reply to a Reuters request for remark.

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One choice was to launch a strategic overview that might enhance the probabilities of AGL being bought off, the Australian reported, citing unnamed sources.

AGL’s board was to satisfy on Sunday afternoon to find out subsequent steps, with a call doable on Monday, the report mentioned.

Shareholders are set to vote on June 15 on AGL’s demerger plan. The cut up would type AGL Australia, which might be the nation’s high vitality retailer, and Accel Power, the nation’s high energy producer.

Expertise billionaire Mike Cannon-Brookes indicated on Friday he would search two seats on AGL’s board if the plan to separate the corporate failed. learn extra

In a letter addressed to AGL Chair Peter Botten, Cannon-Brookes criticised the demerger plan and expressed his intention to nominate two nominees for Grok Ventures – a automobile he owns – to the AGL board.

Cannon-Brookes, the co-chief government of software program agency Atlassian and a vocal local weather activist, gained an 11.3% stake in AGL this month by changing a part of his derivatives-based holding within the firm. He failed in a takeover try with Brookfield Asset Administration (BAMa.TO) earlier this yr. learn extra

Australian pension fund HESTA beforehand joined the tech billionaire in opposing the demerger, saying it didn’t see the cut up supporting decarbonisation targets laid out by the Paris local weather settlement. learn extra

Accel, if the demerger goes forward, will inherit AGL’s coal-fired energy crops and the mantle of Australia’s largest carbon emitter, based on authorities knowledge.

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Reporting by Samuel McKeith; Enhancing by William Mallard

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