Atlassian co-founder Mike Cannon-Brookes has wasted no time in changing into an activist shareholder after taking an 11.3% stake in power big 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 firms, simply hours after information emerged that he’d turn out to be AGL’s largest shareholder via 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 towards the demerger at a gathering scheduled for June 15. The plan needs to be accredited by a minimal of 75% of AGL shareholders.
Within the video Cannon-Brookes claims the demerger “will threaten AGL’s renewable power transition”.
We will probably be voting towards the upcoming, flawed demerger.
— Mike Cannon-Brookes 👨🏼💻🧢🇦🇺 (@mcannonbrookes) Could 2, 2022
“We imagine the Board’s plan to separate AGL into two firms would ship a horrible final result for shareholders, prospects, Australian taxpayers and the planet,” the Maintain It Collectively web site says.
“Decarbonisation is one in all Australia’s greatest financial alternatives and an important problem the world wants to resolve. For this reason we at the moment are AGL’s largest shareholder. We’re calling on fellow shareholders to vote AGAINST the demerger, and for the individuals of Australia to assist a brighter future.”
A number of individuals within the tech sector are backing the transfer by Grok with Geek Woman 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 towards it.
The proposed demerger “dangers a horrible final result” for 3 key causes, he says, with the cut up into two firms, AGL Australia, an power retailer, and Accel Power, an electrical energy generator, creating “two weaker, interdependent entities which might be extra expensive to run”, he believes will probably be value lower than the present enterprise.
Accel Power is at important danger of changing into a stranded asset given its significant coal publicity,” Cannon-Brookes writes.
“Accel Power may have substantial liabilities that impression its credit score worthiness and impede its capacity to lift 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 just isn’t a part of this play.
A number of weeks on, he’s been pressured to purchase in at a premium with AGL shares at the moment sitting at $8.62 on Monday’s shut. He’s purchased in through derivatives via JPMorgan, taking 8.44% at at this time closing worth, plus one other 2.84% in a cash-settled fairness swap from April 4 at $8.46.
Choosing this battle with the AGL board is at a buy-in value round $650 million.
AGL’s share worth has now climbed round 37% this 12 months, to ranges just under 12 months in the past, however longer-term buyers have seen the value fall 69% over sit reaching an all-time excessive 5 years in the past.