The sudden departure of AGL Energy chief executive Brett Redman has not derailed plans to split the $5.6 billion power provider in two, with interim boss Graeme Hunt reaffirming the logic driving the move.
Mr Hunt told the Macquarie Equities Conference on Tuesday that AGL was on track to outline the finer details of its planned demerger by June 30, adding that the company would seek shareholder support to execute the move “as soon as possible”.
AGL last month announced the move to divide itself into two separate businesses, one a carbon-neutral offering called ‘new AGL’ which will incorporate energy, gas and telecommunications retailing, plus some renewable energy assets.
The other is ‘PrimeCo’, which would hold AGL’s carbon-intensive coal and gas-fired power plants, as well as several wind farms across the country.
News of the planned split was swiftly followed by the shock departure of chief executive Brett Redman, who last month told the company he could not make a “long-term commitment” to seeing through the potential change.
Interim CEO Mr Hunt referenced Mr Redman’s departure briefly at the start of his conference presentation, but little else was said about it.
“To those listening… to be frank, I didn’t expect to be up here presenting today,” he said.
Mr Hunt told the conference AGL had undertaken “constructive and positive engagement” with its lenders and investors over the demerger plans, adding that the company would continue to seek feedback ahead of the market update.
Morgans analyst Max Vickerson said the company’s update covered little new ground.