We bought AGL at $5.35 when the news flow was a one-way street, a company with massive headwinds as the ESG dynamic built steam. There has now been one take-over tilt at a high of $8.25 while Mike Cannon-Brookes of Atlassian fame has just acquired (via derivatives) an ~11% stake apparently around $8.50. Brookfield, who is a very savvy global investor was party to the original bid but is now not involved in the second play, clearly, they saw the merit of the bid up to $8.25, but not at a higher level. While we support Cannon-Brookes and his more noble intentions to wind up coal generation sooner than originally planned, we think at MM it’s our job to focus on the economics and act in line with these. We know each individual subscriber will have their own view on our energy future, and huge changes are afoot, however above $8.25 we think AGL is fully priced for the current uncertainty.
MM was happy to take a ~60% profit in AGL
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