AGL scraps demerger plans on Grok lobbying
AGL -1.69%: Australia’s biggest energy retailer has scrapped plans to demerge its generation business with the Chairman and CEO stepping down as a result of the failed move. The company said it was unlikely to reach the 75% approval vote from shareholders with Mike Cannon-Brooks’ Grok Ventures lobbying against the demerger and launching a takeover offer to challenge it. They held 11.38% of the voting rights, and with other notable shareholders coming forward to block the plans, AGL had no choice but to back down. A review is now underway and AGL is expected to engage with Grok Ventures to formulate a plan to move forward. Shares are trading well above the takeover price of $8.25/sh.
MM likes AGL into weakness under $8.50
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