Billionaire Cannon-Brookes wants AGL board seats if coal split fails

Australian tech billionaire Mike Cannon-Brookes has declared he will seek two nominees to the board of AGL if he succeeds in blocking the energy giant’s controversial plan to spin out its coal-fired power stations into a standalone company.

In a letter to AGL chairman Peter Botten on Friday afternoon, the Atlassian co-founder reiterated his “unequivocal opposition” to the planned break-up of AGL’s retail and power generation divisions, which he believes will create two smaller entities less able to fund the accelerated shutdowns of its emissions-heavy coal-fired power stations in line with necessary global climate action.

Cannon-Brookes’ investment arm Grok Ventures, which has amassed an 11.3 per cent interest in AGL, said it was committed to assisting and collaborating with the board on “realising the company’s immense potential”.

“We are therefore seeking two nominees for Grok Ventures on the board of AGL,” the letter said. “We intend to engage directly with you and your fellow AGL directors in relation to board and management renewal … to ensure that AGL has the talent, capital, capability and oversight that is required to embrace the opportunity presented by decarbonisation.”

Cannon-Brookes, one of Australia’s richest people, has amassed an 11.3 per cent interest in AGL and has vowed to use his voting rights to fight the demerger, keep the company whole and bring forward its planned exit from coal-fired electricity in 2045 to as early as 2035. At a shareholder vote next month, the board’s proposed demerger requires the support 75 per cent of the value of the shares voted.

Cannon-Brookes, who did not specifically propose himself for one of the two board seats he was seeking, encouraged the AGL board to “start preparing for AGL’s future including the potential outcome that the demerger does not proceed”.

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When contacted on Friday afternoon, AGL said it had only just received the Grok letter, and “clearly the chairman and the board needs time to consider the letter before responding”.

AGL’s board, which is urging investors to support the split, insists the demerger will unlock value for shareholders, creating a carbon-neutral retail and clean power company to be known as AGL Australia, which will be able to attract financial backers that are increasingly distancing themselves from fossil fuel investments. Meanwhile, the separate power generation company – Accel Energy – will focus on transforming coal sites into energy hubs that could also house renewables and batteries.