Today is a huge day for AGL Energy Limited (ASX: AGL) and, according to a major opponent of the company's previously planned demerger Mike Cannon-Brookes, it's a "huge day for Australia" too.
The company has ditched its intent to separate into coal-fired power focused Accel Energy and energy retailer AGL Australia. The decision has also spurred the resignation of its CEO, chair, and two directors.
Let's look back at the Atlassian Corporation (NASDAQ: TEAM) boss' campaign against the S&P/ASX 200 Index (ASX: XJO)'s company's split.
Cannon-Brookes celebrates as AGL split abandoned
AGL had faced vehement opposition to its previously planned demerger – most notably from Cannon-Brookes.
The billionaire snapped up an 11.28% stake in AGL earlier this month so he could vote 'no' on the split.
He is today celebrating the successful campaign brought about through his investment vehicle Grok Ventures.
Wow. A huge day for Australia 💚💛
— Mike Cannon-Brookes 👨🏼💻🧢
Had to sit down & take it in. This live shot couldn't be a better metaphor for a better, greener path ahead 🌱
We embrace the opportunities of decarbonisation with Aussie courage, tenacity & creativity.
Lots of work but we CAN do this 👊🏻 pic.twitter.com/mSCQl554C0(@mcannonbrookes) May 29, 2022
The Keep it together Australia campaign aimed to convince shareholders to join Cannon-Brookes in opposing the split.
It claimed the company should increase its investment in renewable energy rather than separate.
The demerger will create an energy retailer that is committed to buying most of its energy requirements from a generation business that is heavily reliant on coal-fired power.
AGL is stronger as a single entity that takes advantage of its vertically integrated model to accelerate the shift to green energy.
Keep it together Australia
The company's rebuttals to such claims – and an independent expert's tick of approval – were seemingly unsuccessful.
"AGL Energy believes the demerger proposal will not receive … the 75% approval threshold," the company admitted this morning.
AGL chair Peter Botten and AGL CEO and managing director Graeme Hunt will resign following the plan's abandonment and after finding suitable replacements, Jacqueline Hey and Diane Smith-Gander will also resign from the AGL board.
Cannon-Brookes has previously noted Grok Ventures intends to fight for two board seats, saying:
We want to ensure that AGL has the talent, capital, capability and oversight that is required to embrace the opportunity presented by decarbonisation.
