A: I think that the proposed demerger of AGL into Accel (the “dirty” baseload coal fired power station business) and AGL Australia (the energy retailing and “green” energy supply/storage business) is a net positive, barring huge implementation costs. It won’t happen for some time and is of course subject to shareholder approval.

Are there upsides? Yes, because AGL has been so badly beaten up. Further, the new AGL Australia will appeal because of its customer reach, and very keen interest from investors in “green assets’. The upside for Accel may take longer to show up, but eventually, private equity or other investors will step in and say that notwithstanding the ESG issues, it has unique assets and these can be very profitable.