Tech billionaire Mike Cannon-Brookes has asked for two seats on the AGL Energy board as he continues to oppose what he calls the “deeply flawed” demerger proposal.
Grok Ventures, the private investment vehicle of Cannon-Brookes, has spent $650 million building up an 11..3 per cent stake in Australia’s biggest coal generator and biggest polluter, and is now its biggest shareholder.
Cannon-Brookes, newly confirmed by the AFR Rich List as the country’s third most wealthy person with an estimated worth of $26 billion, is trying to stop the proposed split of AGL into two companies, saying it would weaken both entities and make it more difficult to accelerate the transition from coal to renewables.
He wants to fast-track AGL’s coal exit to no later than 2035, a decade ahead of AGL’s current plans, and says the election of the Labor government makes AGL’s plans increasingly untenable.
AGL has admitted that its plans are not consistent with the climate science, or the Paris climate goals, but has rejected Cannon-Brookes approach in what has become an increasingly tense stand-off.
Late on Friday, Cannon-Brookes revealed he has written to AGL chairman Peter Botten asking for two seats on the AGL board,
“As your largest shareholder, we are most exposed to the decisions and actions made by the board and management relating to the future economic performance of AGL,” he wrote.
“As we have consistently stated, we believe the demerger is a deeply flawed plan. The demerger and the AGL board’s target coal closure dates, are now out of step with the Federal Government’s energy policy, its largest customer, its largest shareholder, the Australian Energy Market Operator and the Australian people.
”We continue to believe shareholders’ interests are best served by keeping AGL together. There is a bright future for a combined AGL to fund an accelerated transition to renewables, creating jobs and ensuring power prices remain as low as possible.
“We are therefore seeking two nominees for Grok Ventures on the board of AGL.
“We intend to engage directly with you and your fellow AGL Directors in relation to board and management renewal. We want to ensure that AGL has the talent, capital, capability and oversight that is required to embrace the opportunity presented by decarbonisation.”
Cannon-brookes said he was “available at any time” to discuss the matters, and urged the board to “start preparing for AGL’s future including the potential outcome that the demerger does not proceed.” AGL has admitted it has no Plan B.
An AGL spokesperson said: “The letter referred to has only just arrived in recent minutes – clearly the chairman and the Board needs time to consider the letter before responding.”
