Oil and Gas News

AGL announces intention to demerge


Australia’s integrated gas, electricity and telecommunications service provider AGL Energy has announced its intention to demerge.

Should the proposed dermerger be approved, it will create two independent, ASX-listed companies: AGL Australia and Accel Energy. These industry-leading companies will facilitate the decarbonisation of Australian energy and assist in the transition toward a cleaner future.

AGL Australia be a multi-service energy retailer, and Accel be Australia’s largest electricity generator. Accel will also repurpose its existing electricity generation sites into low emission hubs and mobilise a range of renewable energy projects.

Following the announcement, AGL has assured shareholders that the demerger will allow each company to create long-term value, as they will be able to pursue different strategies based on their individual assets.

If approved, shareholders will receive one share in AGL Australia for every one share in AGL Energy they hold on the applicable date. AGL Energy shareholders will also retain their existing shares and AGL Energy will be renamed Accel Energy.

All shareholders will have the opportunity to vote on the demerger at the general meeting and scheme meeting that will be held on June 15, and they will receive a demerger scheme booklet in the coming weeks.

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