6 questions asked at 2024 Meridian Energy hybrid AGM

Q1. The ASX is currently in the midst of an unprecedented deluge of takeovers that has contributed to listed entities falling by 170 or 7.4% to 2,124 since June 2022, including 20 straight months of declines. There have already been 27 major takeovers above $200m completed so far this calendar year. There is a clear mis-pricing between public markets and private markets. Why are public markets not valuing ASX and NZSE listed companies like ours more highly and what special protections do we have to avoid being taken over? If AGL, Origin Energy or Woodside bid for Meridian, what regulatory or legislative approvals would be required? Does the chair agree this thinning out of the ASX and NZSE is a problem for both nations, particularly with so few new floats replenishing the ASX ranks? Why is it happening?

Answer: The chair said no takeover is possible because the NZ government owns 51% and the CEO pointed out Meridian is more valuable than AGL and Origin. Watch video of exchange via Twitter.

Q2. In 2019, ASX listed Treasury Wine Estates voluntarily moved to annual elections for directors in line with best practice that occurs in both the US and the UK. Dual listed companies like News Corp and Rio Tinto all do this due to the laws in the US and UK and BHP has continued doing it even after its UK DLC ended in 2021. Can the chair and the only director up for election today. Tania Simpson, comment on whether our company will follow this TWE lead and voluntarily move to annual elections of directors at the 2025 AGM, particularly given there is only 1 item on the agenda today which is a thin agenda to say the least?

Answer: The chair dismissed this request, showing disrespect on the question of shareholder rights and opinion. Tania Simpson wasn't invited to speak but later gave a good campaign speech. Watch video of exchange via Twitter.

Q3. Which of the major proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and NZSA - produced a voting report ahead of today's AGM. Do they even bother with just 1 item on the agenda? Thank you for disclosing the proxies early with the formal addresses lodged with the ASX. Also, will you voluntarily put the remuneration report up for an advisory vote at next year's AGM to comply with Australian law, which is best practice, and why didn't the CEO's incentive grant shares get put to shareholders today?

Answer: The chair said ISS, Glass Lewis and the NZSA issue reports but was dismissive of the request for a rem vote. Watch video of exchange via Twitter.

Q4. Meridian completed the sale of its Australian operation, Southern Hydro, for A$1.42 billion to AGL in November 2005. With the benefit of hindsight, do the chair and CEO agree this was a great price for those assets and that AGL's share price would be higher today if they hadn't overpaid. Could AGL director Graham Cockcroft provide an AGL perspective on this question. Does he agree AGL grossly overpaid for these assets? Also, are there any issues of conflict for Graham sitting on both boards or are there no areas of overlap between AGL and Meridian?

Answer: The chair and CEO both said it was before their time but the CEO said they'd received $700m+ from a second Australia exit in 2021 so overall they'd done well across the ditch. Watch video of exchange via Twitter.

Q5. What has the change of government meant for our business. Is it good having a former public company CEO as prime minister, given he understands the challenges we face as a public company and is clearly taking a more pro-business policy approach. And speaking of government, the Australian opposition is pushing for Australia to develop a government supported nuclear power industry. What do we think of that and is nuclear a viable option to achieve the global energy transition. Even Microsoft recently signed a power purchase agreement to re-open the controversial Three Mile Island nuclear facility in the US to feed its enormous AI and data centre energy demands. Please also comment on data centre energy demand in NZ.

Answer: The italicised bit at the end wasn't asked because the chair was wrangling the questions himself. The CEO dismissed the idea of nuclear for NZ on safety and cost grounds. Watch video of exchange via Twitter.

Q6. Thank you for offering shareholders a hybrid AGM this year and will you commit to keep doing this in future years to maximise shareholder participation? What was the experience like from your end? Also, what is the split between Australian and NZ with our 44,000 retail shareholders and how many shareholders bothered to vote by proxy. When disclosing the outcome of voting today, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a voluntary disclosure initiative adopted by the likes of Metcash, Dexus, Webjet, Tabcorp, Myer, qantas and The ASX itself over the past 3 years. You've got the data, so why not let the sun shine in and confirm has pathetically low retail shareholder participation actually is.

Answer: The chair was actually open to this suggestion and advised that Australians own 7% of the free float. Watch video of exchange via Twitter.

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