Please find attached ASX Release: Shareholder letter in relation to AGL Energy's proposed demerger.


In accordance with ASX Listing Rule 3.17, please see above the copy of a letter and fact sheet being sent to shareholders today in relation to AGL Energy’s proposed demerger.

Authorised for release by AGL Energy’s Company Secretary, John Fitzgerald.

Dear Shareholder,

AGL Energy Board rejects unsolicited non-binding indicative proposal

On 21 February 2022, AGL Energy announced that your Board of Directors had rejected an unsolicited, preliminary, non-binding indication of interest from Brookfield Asset Management Inc and Grok Ventures to acquire 100% of the shares in AGL Energy for $7.50 per share by way of a scheme of arrangement.

The AGL Energy Board considers that the unsolicited proposal materially undervalues AGL Energy and is not in the best interests of AGL Energy shareholders.

As an AGL Energy shareholder you do not need to take any action in response to the unsolicited proposal.

Committed to progressing the demerger, creating a strong future and unlocking shareholder value

As announced in June 2021, the Board is proposing to implement a demerger that will create a strong future for both the retail and generation parts of our business and facilitate a responsible and orderly transition towards a decarbonised energy future.

The demerger will result in two industry leading companies pursuing strategies tailored to their individual purposes and executing on their own decarbonisation plans:

  • AGL Australia will be Australia’s leading multi-service energy retailer, supported by a sophisticated market trading function and access to firming, storage and renewable assets
  • Accel Energy will be Australia’s largest electricity generator, providing low cost energy whilst driving the energy transition by repurposing its sites into low emissions industrial energy hubs and progressing a pipeline of renewable energy projects

Following the demerger, AGL Australia and Accel Energy will be separately listed entities. The Board believes this will be an important catalyst for the realisation of shareholder value as each of these companies can be valued separately and more positively by the market on the basis of their own specific business fundamentals.

We have defined distinct dividend policies and capital structures for each business that will support both future growth and appropriate returns to shareholders.

Importantly, the demerger will enable AGL Australia and Accel Energy to responsibly accelerate the decarbonisation of Australia’s energy system in a way that protects and enhances system stability and shareholder value.

Your Board is confident the demerger is in the best interest of shareholders.

Enabling the future of energy

At AGL Energy’s HY22 results announcement we outlined climate commitments for both AGL Australia and Accel Energy that demonstrated decisive action on decarbonisation. These commitments strike a balance between meeting Australia’s current and future energy needs and the need to responsibly decarbonise, without impacting energy reliability and affordability.

Under the demerger, both AGL Australia and Accel Energy will bring forward their net zero target dates and focus on supporting the development of renewable and flexible generation capacity:

  • AGL Australia will underwrite 3 GW of new renewable generation capacity by 2030
  • Accel Energy will start with 2.7 GW of renewable energy projects in the pipeline at various stages of feasibility, planning or development with the potential for more

The commitments set a baseline for both companies, against which they will measure their success and strive to improve as the energy market evolves.

What’s next

Preparation for the demerger is progressing well and remains on track.

As an AGL Energy Shareholder you will be asked to vote to approve the demerger and we commit to keeping you updated and informed as we move towards a Shareholder vote in mid-June this year.

Please find enclosed a fact sheet providing further information about the demerger and how it creates a strong future for both parts of our business.

If you have any questions call the AGL Energy demerger Information Line (weekdays between 9:00am and 5:00pm AEDT) on 1300 148 339 (within Australia) or +61 2 9066 4059 (international) or visit our website