PERTH (miningweekly.com) – ASX-listed Origin Energy on Thursday confirmed that it is still in talks with a consortium over a potential takeover offer.
The company in November last year received a A$9-a-share non-binding indicative takeover offer from the consortium, which includes Brookfield Asset Management and MidOcean Energy.
Under the proposed A$18.4-billion offer, Brookfield would ultimately acquire Origin’s Energy Markets business and MidOcean would acquire the Integrated Gas business.
Origin on Thursday said that the consortium had substantially completed due diligence and active engagement continued on a non-exclusive basis in relation to the submission of a binding proposal.
Any binding proposal will be subject to a number of conditions, including approval from the Australian Competition and Consumer Commission and Foreign Investment Review Board and other terms and conditions, which will be subject to negotiation between the parties as part of a scheme implementation deed.
Origin, meanwhile, on Thursday also reported a statutory profit of A$399-million for the half-year ended December, compared with a loss of A$131-million in the previous corresponding period, while underlying profit declined from A$268-million to A$44-million in the same period, with higher earnings from the Integrated Gas business offset by lower earnings in the Energy Market business, along with an income tax expense associated with unfranked distributions from the Australia Pacific liquefied natural gas (LNG) asset.
Origin received cash distributions from Australia Pacific LNG of A$783-million for the half-year on higher realised oil prices. Australia Pacific LNG is expected to distribute between A$1.4-billion and A$1.6-billion in cash to Origin for the 2023 financial year, net of oil hedging.
“Consistent with our stated intention to exit upstream exploration activities, excluding Australia Pacific LNG, we have now completed the divestment of Origin’s interest in the Beetaloo basin and recently executed agreements with Buru Energy to exit our interests in the Canning basin,” said Origin CEO Frank Calabria.
The sale of Origin’s interest in the Northern Territory’s Beetaloo basin completed in November with a royalty agreement covering future production and A$70-million net cash proceeds.
An agreement has been executed with Buru Energy Limited to exit Origin’s interest in Western Australia’s Canning basin, which is expected to complete in the second half of 2023.