A Brookfield-led consortium of investors and EIG has improved its buyout bid for Origin Energy to A$16.4bn ($10.5bn) or $9.53 per share, Reuters has reported.
Brookfield noted that the revised offer is the best and final proposal and an 8% increase over the previous proposal of $8.81 per share.
However, the proposal has been rejected by AustralianSuper, the largest shareholder in Origin with a 13.67% stake in the business.
It has rejected the offer twice, on 31 October and 2 November 2023, stating that “the offer from the consortium remains substantially below our estimate of Origin’s long-term value”.
Origin plans to hold a shareholder vote later in November.
If the shareholder vote fails to garner support, the consortium plans an off-market takeover bid if it acquires more than 5% of Origin shares. This would call for a minimum of 50.1% votes in its favour.
The board of Origin is recommending its shareholders to vote in favour of the revised scheme in the absence of a superior bid.
Origin chairman Scott Perkins stated: “We are pleased to have agreed with the consortium a significant increase in the cash consideration, reflecting the value of Origin’s assets, people and the company’s strategic positioning for the energy transition.
“The revised consideration is now above the top end of the Independent Expert’s 30 June 2023 valuation range, allowing all shareholders to receive a certain cash value for their Origin shares. We encourage all shareholders to vote in favour of the scheme.”
Perkins further noted: “Brookfield is one of the world’s largest investors in renewable power and climate transition assets and will complement Origin’s existing capabilities by bringing additional capital, procurement capability and global renewables development expertise.
“We believe Brookfield’s ownership of Origin’s Energy Markets business will accelerate the build-out of cleaner energy at a speed and scale much greater than Origin’s existing plans.
“Brookfield’s publicly stated intention is to invest $20–30bn in renewables and storage assets by 2033 so that the majority of Origin’s customer demand is serviced by clean energy sources, and to support Origin’s 1.5-degree Paris-aligned emissions pathway.”
The Australian Competition and Consumer Commission approved the deal in October 2023.
