Atlassian co-founder Mike Cannon-Brookes has wasted no time in changing into an activist shareholder after taking an 11.3% stake in vitality large AGL.
The billionaire launched a marketing campaign with the slogan “Maintain it collectively” to oppose AGL’s plans for a demerger, creating two separate ASX-listed corporations, just hours after news emerged that he’d become AGL’s largest shareholder by his household funding agency, Grok Ventures.
The marketing campaign features a web site and slick video with Cannon-Brookes interesting to AGL shareholders to vote in opposition to the demerger at a gathering scheduled for June 15. The plan needs to be accepted by a minimal of 75% of AGL shareholders.
Within the video Cannon-Brookes claims the demerger “will threaten AGL’s renewable vitality transition”.
We shall be voting in opposition to the upcoming, flawed demerger.
— Mike Cannon-Brookes 👨🏼💻🧢🇦🇺 (@mcannonbrookes) May 2, 2022
“We imagine the Board’s plan to separate AGL into two corporations would ship a horrible final result for shareholders, prospects, Australian taxpayers and the planet,” the Maintain It Collectively web site says.
“Decarbonisation is certainly one of Australia’s greatest financial alternatives and an important problem the world wants to unravel. That is why we at the moment are AGL’s largest shareholder. We’re calling on fellow shareholders to vote AGAINST the demerger, and for the folks of Australia to help a brighter future.”
A number of folks within the tech sector are backing the transfer by Grok with Geek Lady Academy co-founder Sarah Moran saying she’ll be shopping for AGL shares too.
In an open letter to the board of administrators, Cannon-Brookes calls the merger “a flawed plan” saying Grok intends to vote in opposition to it.
The proposed demerger “dangers a horrible final result” for 3 key causes, he says, with the break up into two corporations, AGL Australia, an vitality retailer, and Accel Vitality, an electrical energy generator, creating “two weaker, interdependent entities which are extra expensive to run”, he believes shall be price lower than the present enterprise.
Accel Vitality is at important danger of changing into a stranded asset given its significant coal publicity,” Cannon-Brookes writes.
“Accel Vitality could have substantial liabilities that impression its credit score worthiness and impede its capacity to boost the capital required to fund the substitute of its coal-fired energy technology fleet and meet its remediation liabilities.”
His entry into the battle over AGL’s demerger comes simply two months after the board rejected his second $5.5 billion takeover bid with Brookfield Asset Administration at $8.25 a share. Brookfield isn’t a part of this play.
A number of weeks on, he’s been compelled to purchase in at a premium with AGL shares at present sitting at $8.62 on Monday’s shut. He’s purchased in by way of derivatives by JPMorgan, taking 8.44% at right now closing worth, plus one other 2.84% in a cash-settled fairness swap from April 4 at $8.46.
Selecting this struggle with the AGL board is at a buy-in price round $650 million.
AGL’s share worth has now climbed round 37% this yr, to ranges slightly below 12 months in the past, however longer-term traders have seen the worth fall 69% over sit reaching an all-time excessive 5 years in the past.