Those invested in AGL Energy Limited (ASX: AGL) shares can anticipate receiving the company's demerger booklet later today after the Supreme Court of New South Wales gave the upcoming scheme meeting its tick of approval.
AGL's directors are urging shareholders to vote in favour of the split at the meeting on 15 June.
At the time of writing, the AGL share price is $8.27, 1.84% lower than its previous close.
Its slump is in line with the broader market's performance. Right now, the S&P/ASX 200 Index (ASX: XJO) is recording a 2.26% fall. Its struggle follows a dramatic tumble on US markets overnight.
Let's take a look at the latest from the ASX 200 energy producer and retailer.
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AGL share price suffers despite court approval
The AGL share price is struggling ahead of the release of a scheme booklet containing more details on the company's planned demerger.
"[The booklet] is expected to be released later today, following registration … with the Australian Securities and Investments Commission (ASIC)," AGL told the ASX on Friday.
If successful, the demerger will see AGL Energy split in two.
It will result in the creation of energy producer Accel Energy and energy retailer AGL Australia. AGL Australia will inherit the company's branding.
The court made its decision after reportedly dismissing a protest motion from shareholder Joshua Ross.
Ross was concerned the booklet wouldn't accurately detail risks associated with the company's coal-fired power production, reports The Australian.
The shareholder reportedly argued major energy user Tomago Aluminium could cut ties with Accel Energy following the expiry of its contract in 2028.
"[I]t's not a matter for this scheme booklet to start entering into detail of the company's confidential thinking about what it might be negotiating in six years' time," the publication quoted lawyers acting on behalf of AGL as saying.
Today's news comes after tech billionaire Mike Cannon-Brookes upped the ante on his campaign to block the split this week.
AGL will hold a meeting where shareholders will have their chance to vote on the demerger on 15 June. The meeting will take place at Sydney's International Convention Centre and online.
The split needs the approval of 75% of shareholders.
Cannon-Brookes has committed to voting his 11.28% stake in the company against the transformation. He is urging his fellow shareholders to do the same.
