Brookfield submits new $10.6bn proposal for Origin Energy
Brookfield's consortium partner EIG Partners would take on Origin's integrated gas business, which includes the 27.5% stake in Australia Pacific LNG (pictured).
SYDNEY - Origin Energy, Australia's biggest energy retailer, said on Thursday it had received a revised $10.6-billion takeover bid from a Brookfield-led consortium that would allow institutional investors to remain invested in parts of the company.
A meeting in Sydney to vote on the original bid on Thursday has been delayed until December 4 to consider the new offer, the company said.
Investors had been widely expected to vote against the initial offer after Australian Super, which has a 16.5% stake in Origin, said it would vote no as it believed the offer substantially undervalues the company's ability to profit from the shift to renewable energy.
Under the revised terms, the A$9.43 per share bid remains but some investors can stay invested in the energy markets business that would be owned by Brookfield.
Brookfield's consortium partner EIG Partners would take on Origin's integrated gas business which includes the 27.5% stake in Australia Pacific LNG (APLNG).
If that bid fails to achieve 75% shareholder support, a revised proposal has been lodged that would see Origin sell the energy markets business to Brookfield for A$12.3-billion ($8-billion).
In that case, EIG would make an off-market takeover offer for the rest of Origin, which would centre on the APLNG stake.
Origin shareholders would receive a total of $A9.08 a share, plus a A$0.22 franking credit dividend if EIG got up to 90.1% control of Origin.
The Brookfield consortium's early November offer of A$6.59 and $1.86 in cash and a A$0.39 special dividend equated to A$9.53 per share, but foreign exchange volatility has pushed that down to the current level.
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