AGL Shelves Demerger Plans in Win for Billionaire’s Climate Push

Georgina Mckay, Bloomberg News

Vapor rises from cooling towers at the AGL Energy Ltd. Loy Yang Power Station in the Latrobe Valley, Australia, on Tuesday, Oct. 26, 2021. Australia’s Prime Minister finally agreed to a plan to zero out its carbon emissions by 2050, but said he wouldn’t enshrine the target in law, and would continue to rely on fossil fuels and projects designed to offset planet-warming pollution. Photographer: Carla Gottgens/Bloomberg , Bloomberg

(Bloomberg) -- AGL Energy Ltd. shelved a plan to split off most of its coal-fired power plants as Australia’s biggest emitter faces increased pressure to act on climate that’s being led by one of the nation’s wealthiest people.

The Sydney-based utility will suspend its plan to split into retail unit AGL Australia and Accel Energy, which would take over control of most of the aging fleet of coal plants, it said Monday in a statement. Chief Executive Officer Graeme Hunt and Chairman Peter Botten will step down. AGL had scheduled a meeting of shareholders for June 15 to vote on the demerger.

The decision comes after billionaire Mike Cannon-Brookes and other investors spoke out against the split of Australia’s biggest scope one greenhouse gas emitter. The Atlassian Corp. founder’s Grok Ventures investment arm has taken control of about 11% of AGL, a stake he is using to unwind the company’s plan and push for more aggressive climate action.

“Having regard to anticipated voter turnout and stated opposition from a small number of investors including Grok Ventures, AGL Energy believes the Demerger Proposal will not receive sufficient support to meet the 75% approval threshold for a scheme of arrangement,” AGL said.

Read more: Billionaire Buys AGL Stake to Oppose Slow Coal Power Exit (1)