AGL’s rising share price may tempt Mike Cannon-Brookes to sell stake

Atlassian co-founder Mike Cannon-Brookes.

Could Mike Cannon Brookes be about to sell down a stake in AGL Energy?

The company’s stock price has been on a tear of late, with its shares now at $11.58 and the company’s market value at $7.8bn.

The Atlassian co-founder and tech billionaire offloaded part of his holding last month, and some believe with the share price trading so strongly and expenses elsewhere, he may look to take more money off the table.

His company, Grok Ventures, sold 1 per cent in the group in June and increased its short position by 2 per cent. But he still retains a 10.41 per cent interest in the business and many believe he would want to remain a majority shareholder.

He sold 5.8 million shares in April in two tranches at $8.20 and $8.28 each, equating to less than 1 per cent of the stock.

Grok Ventures has large spending commitments for the Sun Cable project, the country’s biggest renewable energy project which it purchased in May.

The capital investment needed is speculated to be as much as $20bn. One view is that Grok is unlikely to sell until AGL has shut down its coal-fired power operations, but others believe the time may be right to take profits, particularly on the back of news about his separation from wife, Annie, as reported recently.

Mr Cannon-Brookes has had a significant influence on AGL, which reports its results on Thursday.

Despite having a takeover he launched last year with Brookfield rejected, he succeeded in securing enough shareholder support to scupper AGL’s plan to demerge its coal-related assets. He then used his sway to lead an overhaul of the board.

AGL’s clearer outlook for growth is expected to fund both lucrative returns to shareholders and facilitate its transition away from fossil fuels.