Australia’s biggest energy producer AGL could scrap plan to carve off its coal-fired power stations

Australia’s biggest energy producer AGL could scrap a controversial plan to carve off its coal-fired power stations amid growing concerns over the proposal.

The power giant was set to take a possible demerger to vote on June 15, with 75 per cent of shareholders votes needed to proceed.

But the company could instead announce a strategic review of the company on Monday amid speculation that a division into separate retail and generation units may not have enough support from shareholders.

The company was considering its options on Sunday, including the possibility of announcing a strategic review which may increase the likelihood of the electricity company being sold off, sources told The Australian.

It comes after tech billionaire and green advocate Mike Cannon-Brookes embarked on a relentless high-profile campaign against the demerger. 

Mr Cannon-Brookes is AGL’s biggest investor, owning a 11.3 per cent stake. 

More to come.