We believe the proposed AGL demerger is a deeply flawed plan that will deliver a terrible outcome for AGL shareholders, customers, workers, Australian taxpayers, and the planet. We believe the best way to realise the potential value of the company is to vote AGAINST the demerger and keep AGL together.
Vote today. Vote AGAINST the AGL demerger.
We believe the demerger will destroy shareholder value. It will create two smaller and weaker entities, limiting their growth options - this is not a choice between financial returns and environmental responsibility. So let's keep it together and transition AGL to a brighter future that makes dollars and sense.Vote Against
We believe that keeping AGL together is the best way to put the company back at the forefront of energy generation in Australia. A combined AGL can deliver more affordable, reliable renewable energy and a better future for shareholders, customers and future generations. Let’s keep it together and transition to a brighter future.Why it's important
We believe the Board is basing its recommendation on a view of the world that has been publicly dismissed as “flawed” and “fantasy” by another shareholder. Business and energy experts are also sceptical. You’ll hear the Board repeating these myths to sell the demerger plan. So, let’s deal with each of them here:
*It appears coal volumes will fall further and become even less competitive as the supply of renewables continues to increase. This will likely result in losses. Outages like the recent electrical fault at Loy Yang A which is threatening to keep one quarter of the plant’s capacity offline until the start of August 2022, will likely increase in frequency, and continue to impact AGL’s profitability.
*The Australian Energy Market Operator (AEMO) predicts “all brown coal and two-thirds of black coal generation could withdraw by 2032”. Yet, AGL still forecasts operating Loy Yang A until 2045. In contrast, Australia’s other two large energy retailers, EnergyAustralia and Origin Energy have brought their largest coal plant closures forward to the 2020’s. AGL remains out of step with the market’s largest participants. AEMO believe competitive and operational pressures will increase for coal-fired generators with the ever-increasing penetration of cheap renewable generation.
*AGL has invested $0 in direct development of renewable generation over the last five years. During this same time period, ~10GW of large scale renewables was installed across Australia. We believe AGL’s focus on coal investments whilst the rest of the world switches to renewable energy has contributed to its poor share price performance.
*We believe the major banks are unlikely to finance AGL as their long term plan is inconsistent with the Paris Agreement. Three of the four major banks have signed up to the UN Net-Zero Banking Alliance which is a commitment to bring their loan portfolios in line with the Paris Agreement. AGL’s current plan is inconsistent with the Paris Agreement and AGL’s own modelling shows they believe to bring their portfolio in line with the Paris Agreement would mean closing their coal plants by 2035.