Open Letter to AGL Shareholders

Open Letter to AGL shareholders from Mike Cannon-Brookes of Grok Ventures[1]

Fellow AGL shareholders,

When a worker lit Sydney’s first gas lamp in 1841, AGL was a company excited to embrace the future – not one that was afraid of it.

Soon you will be asked to vote on the proposed AGL demerger.

We’re not in favour of splitting AGL apart, we believe in keeping it together. If you want to see your investment grow, we believe you should join us and vote AGAINST the demerger.

We believe the proposed demerger would:

  • Risk further value destruction after five years of seeing the price of your shares fall by almost 70 per cent[2].
  • Put blind faith in a Board of Directors that has underinvested in low-cost renewable energy and is out of step with the market.
  • Ensure AGL remains Australia’s largest emitter of greenhouse gases by retiring coal assets up to 10 years too late. By then, the market and many AGL customers will have moved on.

We will vote all the shares we control at the relevant time AGAINST the demerger and call on fellow AGL shareholders to do the same.

You are being asked to approve the split of AGL into two smaller companies, which we strongly believe will be weaker companies unable to access the capital needed to replace ageing coal assets, or even keep them running reliably. The demerger plan further threatens shareholder capital and the ability to pay dividends.

A vote AGAINST the demerger would show the Board you will not accept an outcome that makes no sense, or cents.

We are incredibly optimistic about AGL’s potential - which is why we’ve joined you as a shareholder - but there will be no turning back if this flawed demerger plan goes ahead. This is our best opportunity, and quite possibly the last to steer this company in the right commercial direction.

We strongly believe this is not a choice between financial returns and environmental responsibility. It’s time for AGL to embrace the future like it did back in 1841, because a faster transition to renewables will deliver a better outcome for AGL shareholders, customers, Australian taxpayers and the planet.

Keep AGL together. Vote AGAINST the demerger.

Mike Cannon-Brookes Signature

Mike Cannon-Brookes

Write back to me here:


About Grok Ventures

Grok Ventures[1] is a business name used by the private investment group controlled by Mike Cannon-Brookes. Grok Ventures has invested in some of the most ambitious technologies and companies solving decarbonisation. Our investment portfolio spans early to growth stage start-ups and venture capital funds, small and large-scale infrastructure projects, and listed equities. We invest for the long term, driving step change in the largest emitting sectors, including energy, food, transport, and supply chains.

[1] Grok Ventures is a business name used by the private investment group controlled by Mike Cannon-Brookes. "Grok Ventures" is a registered business name of Cannon-Brookes Services Pty Limited (ACN 616 170 542). An affiliate of Cannon-Brookes Services Pty Limited, the Galipea Partnership, is the holder of a more than 11% interest in AGL Energy Limited. References in this letter to "we" or "our" or similar expressions in the context of views beliefs or opinions contained, or referred to, in this letter are the views, beliefs or opinions of Mike Cannon-Brookes and Cannon-Brookes Services Pty Limited current only as at the date of this letter. This letter does not purport to contain the views, opinions and beliefs of any other entity controlled by, or affiliated with, directly or indirectly, Mike Cannon-Brookes or any other person

[2] IRESS based on the closing price of AGL's shares of $26.76 on 28 April 2017 and $8.68 on 29 April 2022.

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