AGL Energy Limited (AGL) refers to the Notice of initial substantial holder lodged by Galipea Partnership on 2 May 2022 (Notice), which discloses that the Galipea Partnership (an entity associated with Mike Cannon-Brookes) holds:

• a relevant interest in 8.44% of AGL’s issued shares pursuant to a loan and equity collar transaction with an investment bank; and
• an economic interest in an additional 2.84% of AGL’s issued shares under a cash settled total return swap.

Grok Ventures, another entity associated with Mike Cannon-Brookes, has also written to the Board of AGL and stated that it intends to vote the shares it controls against AGL’s proposed demerger.

The Board has considered these developments and continues to believe that AGL’s proposed demerger is in the best interests of AGL shareholders as it:

• creates the potential to maximise growth in the value of shares by giving each company the freedom to pursue individual strategies and growth initiatives;
• supports shareholder returns through distinct dividend policies and capital structures; and
• leaves the future value of two ASX listed companies with shareholders.

AGL remains committed to progressing the proposed demerger with a view to achieving implementation by 30 June 2022 and a responsible transition of Australia’s energy system.

The Board will continue to be guided by the best interests of AGL shareholders in its decisions. Shareholders are advised to take no action at this time.

Authorised for release by AGL Energy’s Board of Directors.