AGL appears set to dump demerger plan, yielding to Mike Cannon-Brookes

AGL had scheduled a meeting of shareholders for 15 June to vote on a scheme to separate its generation arm into a new company, Accel Energy, and a retailing arm, AGL Australia. It needs 75% of stockholders to agree to the plan, intended to take place by the end of June.

AGL itself has said the demerger would carry big costs, including $260m up front.

Last week Cannon-Brookes, through his family company Grok Ventures, said he wanted two seats on the board.

Media outlets including the Financial Review reported on Monday that the chief executive, Graeme Hunt, would leave AGL, as the demerger plan was now doomed. Other investors, including the superannuation fund Hesta, which owned about 0.36%, have also said they would oppose the demerger.

Earlier this year Cannon-Brookes joined the Canadian asset manager Brookfield in a bid to take AGL private at $8.25 a share but was rebuffed. The stock closed at $8.87 on Friday.

Retail prices are also rising, with the default offer set by the Australian Energy Regulator last week lifting its standard market offer from 1 July by as much as 18%.