AGL Energy (ASX:AGL) has withdrawn the proposal to separate AGL Energy into AGL Australia and Accel Energy via a demerger.
AGL said its board continues to believe that the demerger offers the best way forward for AGL Energy and its shareholders, and this was also the view of the independent expert. However, the board believes this path is no longer available.
However, having regard to anticipated voter turnout and stated opposition from a small number of investors including Grok Ventures, AGL Energy believes the demerger will not receive sufficient support to meet the 75 per cent approval threshold for a scheme of arrangement, the company added.
AGL also announced a number of board changes.
Peter Botten will resign as chairman upon a replacement and Graeme Hunt will step down as chief executive officer and managing director. Jacqueline Hey has resigned as a non-executive director effective from today and Diane Smith-Gander will resign from the board following the release of AGL’s FY22 results in August.
Shares in AGL Energy (ASX:AGL) last traded at $8.87.