AGL demerger hangs by a thread

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The energy company has US powerhouse Global Infrastructure Partners on its side, but some say its demerger is already dead after Mike Cannon-Brookes became its biggest shareholder.

A contentious plan to split AGL Energy into two is at risk of heading for the scrapheap following the latest offensive from tech billionaire Mike Cannon-Brookes, despite support through a $2 billion deal with US-based giant Global Infrastructure Partners.

In a sign of dissatisfaction among some large shareholders, superannuation giant HESTA advised it might vote against the demerger at the June 15 meeting, where 75 per cent of voting shareholders need to approve it to proceed.

, which has Labor and the Coalition sparring over their respective records on power prices and the impact of their policies. Mr Albanese said Labor’s energy policy, which had been discussed with the business community, “will make a difference” by cutting emissions, creating jobs, reducing power prices and spurring private sector investment.The ructions over AGL further heighten uncertainty over the future for what is both the country’s biggest electricity supplier and its largest carbon polluter, and upon which the country’s power security largely depends.

Shares in AGL closed down 3.1 per cent at $8.35, still higher than the $8.25 offered by Brookfield and Mr Cannon-Brookes in their most recent takeover proposal last month.VanEck portfolio manager Jamie Hannah said he was waiting for the scheme booklet with all the detailed information, due to be released within days, before deciding how to vote.

 

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