Ann: Consortium increases cash consideration to $9.53 per share, page-138

"I honestly find a lot of the views here quite fascinating. Brookfield renewables are coming across as some evil empire. Let's assume I am ASIC or ASX and I read one of the posts above and go, let's look into this. What do I find? I see a company that is doing more for climate change than the vast majority of any other on the planet. That is probably a cover up though; let's see what has happened here. Oh, OK, They want to buy Origin energy and then invest 20 Billion in fast tracking Australia to net zero while they make money themselves. They are offering a 55% premium to the current share price. Shock horror! How evil! How dare they offer a share price that is greater than their 3 year high. Suddenly we are all angry with this? Don't quite get it."

You can't compare the premium to what the share price was a year ago and still say it is a great offer. It was a good offer at the time it was made but over the past year there has been significant improvements in Origin's earnings outlook with improvements in electricity prices, oil and gas prices.

As has been covered elsewhere this improvement in the earnings outlook been shown in AGL Energy's share price increase of over 40%. So it is likely that ORG's share price would be at least 40% higher too compared to that of 1yr ago even without the takeover offer. That means the current offer does not look as compelling today with what we know today. It was agreed with the Origin Board at a time of a cyclical low in Origin's earnings.