The demerger is a smoke and mirror exercise that was only proposed in 2021 by the ex-CEO to stem the bleeding in the share price. It might, at best, produce a short term sugar hit in share price, which I would think is what the board wants to achieve. They have neither the care nor capability to lead the energy transition in Australia as smartly and cheaply as possible. Doing that requires thinking outside the box, a skill which life long corporate types do not possess.
There is no real life example in the world to suggest any utility company being better off with two separate vehicles running the generation and distribution arms.
AGL Price at posting:
$8.61 Sentiment: Hold Disclosure: Held
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