Australian energy company Origin Energy has secured a revised takeover proposal of $10.6bn (A$16.14bn) from a Brookfield-led consortium of investors and EIG, Reuters has reported.
Each Origin share is priced at A$9.43.
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The buyers include a consortium of Brookfield Asset Management and MidOcean Energy, owned by EIG Partners.
AustralianSuper, the pension fund that owns 17.5% of Origin, has rejected the offer, stating that it undervalues the business.
The pension fund regards the new bid as substantially below its long-term value estimate for the energy company.
In a press release, AustralianSuper noted that the Origin board itself has identified that “the transaction appears inferior to the existing scheme,” which was to be put to the vote on 23 November 2023 and which is considered unlikely to succeed.
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By GlobalDataThe pension fund also concurred with the Origin board’s position that it has “significant reservations as to the complexity, conditionality and differing value and potential adverse tax outcomes to Origin and shareholders”.
Origin Energy has now deferred the shareholder voting to 4 December 2023, stating that the postponement will give them time to consider the revised proposal.
The revised bid proposes the divestment of the energy markets business to Brookfield for A$12.3bn, as well as a subsequent off-market takeover offer by EIG with a 50.1% minimum acceptance condition.
In October 2023, the Australian Competition and Consumer Commission gave the green light to Origin’s acquisition by the Brookfield-led consortium.
Brookfield stated that it will invest at least $20bn in Origin Energy and will bring its renewable capacity to 14GW in the coming decade.
This is expected to contribute to Australia’s emission reduction targets.
