AGL says Cannon-Brookes is making false claims on demerger

AGL Energy chief executive Graeme Hunt has accused Mike Cannon-Brookes of making false claims about its planned demerger as tensions mount between the two sides over a controversial split of the 180-year-old power giant.

Mr Cannon-Brookes has amassed an 11.28 per cent stake in AGL and has started lobbying big investors to vote against the demerger at a company meeting on June 15, arguing that keeping the company intact will deliver more value for shareholders.

“I do think it would be rather odd for me to stand up here today and not address the recent commentary following the initial substantial shareholder notice … and some of the false claims being made as part of the justification for the position it has taken on the proposed demerger,” Mr Hunt told the Macquarie Australia Conference.

Mr Cannon-Brookes claimed AGL had not invested in renewable energy, major banks were unlikely to provide financing, and it was out of step with its peers in dealing with climate change.

Mr Hunt returned fire, saying shareholders should “focus on the facts”, which included AGL’s renewable and battery portfolio of 2350 megawatts, supplying some of the lowestcost generation in the power grid and already announcing new coal closure dates.

The power giant had been hopeful of receiving court approval for its demerger scheme documents on Thursday so it could share details of the proposed company split with shareholders.

However, a protest motion was lodged in the Supreme Court of NSW, potentially delaying the scheme booklet being approved.

Joshua Ross lodged a challenge over whether sufficient coal and climate risks were detailed in AGL’s scheme documents.

Mr Ross is a former analyst with Watermark Funds Management who now runs ticketing agency Humanitix, which is partly funded by Mr Cannon-Brookes’s Atlassian Foundation, according to its website.

Speculation had surfaced on Thursday ahead of the Supreme Court hearing that Mr Ross was linked to Mr Cannon-Brookes’s family investment vehicle, Grok.

However, the billionaire has rejected any link while applauding the individual for challenging the demerger, which needs approval from 75 per cent of shares to proceed.