Origin rejects Brookfield’s Plan B as $12bn deal teeters
Origin Energy rejected a backup deal proposal from Brookfield Asset Management to acquire its main energy business, with a full A$19-billion takeover expected to be rejected at a vote next week.
An alternative offer by Brookfield and EIG Global Energy Partners under which the Canada-based fund would pay A$12.3-billion for the target’s energy generation and retailing business “is not in the best interests of Origin or its shareholders,” the Sydney-based utility said Thursday in a statement, calling it “incomplete, complex, highly conditional.”
Investors are due to vote Monday on a full takeover by a Brookfield and EIG-led consortium, a deal that’s opposed by Origin’s largest investor AustralianSuper, which holds about 17% of the company — likely to be sufficient to block the transaction.
AustralianSuper, the country’s largest pension fund, has rejected Brookfield’s offers as too low, and complained that taking the firm private would deny investors an opportunity to gain exposure to the energy transition.
Origin shares fell as much as 3.3% in Sydney trading, as of 11:01 a.m. local time.
Brookfield and EIG made a revised offer last week hours before a scheduled shareholder vote on the A$9.43 per share proposal, prompting Origin to delay the meeting to December 4. Origin’s board continues to unanimously recommend that proposal, the company said.
Under the revised plans, institutional shareholders would be offered a chance to invest in the company if a full takeover is successful, according to the bidders.
If the full takeover is rejected, the utility “will continue to execute on Origin’s strategy and ambition to lead the energy transition in Australia,” and also “remain open to strategic options that enhance shareholder value,” according to the statement.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation