SYDNEY, May 29 (Reuters): AGL Energy Limited could launch a strategic review as early as Monday as doubts grow over the Australian power producer's plans to split into two companies, the Australian newspaper reported.
AGL was mulling its options on Sunday amid market speculation that breaking the company into retail and generation units may lack the shareholder support to go ahead, the newspaper said.
AGL did not immediately respond to a Reuters request for comment.
One option was to launch a strategic review that could boost the chances of AGL being sold off, the Australian reported, citing unnamed sources.
AGL's board was to meet on Sunday afternoon to determine next steps, with a decision possible on Monday, the report said.
Shareholders are set to vote on June 15 on AGL's demerger plan. The split would form AGL Australia, which would be the country's top energy retailer, and Accel Energy, the country's top power producer.
Technology billionaire Mike Cannon-Brookes indicated on Friday he would seek two seats on AGL's board if the plan to split the company failed.
In a letter addressed to AGL Chair Peter Botten, Cannon-Brookes criticised the demerger plan and expressed his intention to appoint two nominees for Grok Ventures - a vehicle he owns - to the AGL board.
AGL Energy mulls strategic review amid demerger doubts
The Australian reports
FE Team | Published: May 29, 2022 23:45:26
AGL Energy mulls strategic review amid demerger doubts
Share if you like