- AGL Energy (AGL) has withdrawn its demerger proposal, sparking a number of resignations within the Board
- The demerger would have seen the company separate into AGL Australia and Accel Energy, but due to lack of shareholder support, AGL has decided not to proceed
- The move has triggered a board reshuffle, with three board members to resign and CEO and Managing Director Graeme Hunt to step down from his role once a replacement is found
- With all of the changes, the Board plans to review the strategic direction of the company to determine the best way to move forward
- AGL shares are down 3.95 per cent and trading at $8.52 at 10:38 am AEST
AGL Energy (AGL) has withdrawn its demerger proposal, sparking a number of resignations within the Board.
The demerger would have seen the company separate into AGL Australia and Accel Energy.
The board, plus an independent expert, believe a demerger would have been supported by a majority of shareholders and the best choice for the company, but it is no longer considered possible.
This is due to a lack of shareholder support, with opposition stated from a number of small investors including Grok Ventures.
The company will now approach the Court to cancel the relevant meetings for the demerger as it doesn’t expect to meet the 75 per cent approval threshold for a scheme of arrangement.
The move has triggered a board reshuffle, with Chairman Peter Botten, Non-Executive Director Jacqueline Hay, and board member Diane Smith-Gander to resign.
Graeme Hunt will also be stepping down from his role as CEO and Managing Director, but will continue to act in this role until a replacement is found.
With all of the changes, the Board plans to review the strategic direction of the company.
This includes utilising the analytical work completed for the demerger, considering its environmental approach, identifying new approaches from third parties, and consulting with a broad range of stakeholders.
AGL’s updated strategic direction is expected to be announced with its FY22 results.
Shares in the company were down 3.95 per cent and trading at $8.52 at 10:38 am AEST.