Origin Energy retails electricity and natural gas in Australia. Credit: Kenny Eliason on Unsplash.

Australian company Origin Energy has received an A$18.4bn ($11.7bn) indicative, conditional and non-binding buyout proposal from a consortium led by Canada’s Brookfield Asset Management.

The consortium, which includes Brookfield affiliates, its managed funds, as well as MidOcean Energy, has proposed to acquire all shares of Origin by paying A$9 per share in cash.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In August this year, the consortium made its first bid to acquire the entire stake in Origin for A$7.95 per share.

In September, the consortium further sweetened its bid with an indicative price of A$8.70 to A$8.90 per share.

The latest offer from the consortium is nearly 16% higher than its initial proposal and at a premium to Origin’s last trading share price.

In a statement, Origin said: “If implementation occurs later than 15 May 2023, the offer price under the Indicative Proposal would then increase by $0.03 per month.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The indicative proposal suggests that Brookfield would acquire Origin’s energy business, while MidOcean would acquire its integrated gas business.

Origin Board would also recommend that shareholders vote in favour of the A$9 in cash per share proposal, in the absence of a superior proposal.

Additionally, the Board also intends to provide the consortium an opportunity to conduct due diligence to enable it to put forward a binding proposal.

To proceed further, the proposal will require approval from the Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board (FIRB).

Origin chairman Scott Perkins said: “This proposal confirms that Origin, its operations, and management team represent a highly strategic platform, well placed to benefit from the energy transition.

“Our confidence in Origin’s prospects underscored our engagement with the Consortium and delivered a material increase on their initial offer. While the due diligence process advances, we will remain focussed on the successful execution of our strategy.”