Dear Mr Botten,
Further to our engagement in relation to the upcoming demerger vote – as AGL’s largest shareholder, I want to reiterate our unequivocal opposition to the demerger proceeding.
We've reconfirmed our position in a revised substantial holder notice; my private investment group known as Grok Ventures[1] has an 11.28% stake, including 1.21% which continues to be subject to equity collar arrangements. In the interest of transparency, we've attached a full suite of ancillary documents to our updated substantial holder notice filed with the ASX today. 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.
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.
As AGL’s largest shareholder, we are committed to fulfilling this opportunity to assist and collaborate with the board on realising the company’s immense potential.
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.
I am available at any time to discuss these matters. In the meantime, I strongly encourage you and the AGL board to start preparing for AGL’s future including the potential outcome that the demerger does not proceed.
Please note for transparency, we will be disclosing this letter publicly and publishing a copy on our website.
Sincerely,
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Mike Cannon-Brookes
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.