- Origin Energy (ASX:ORG) announces that the Brookfield-led consortium of investors and EIG has increased its cash offer to all Origin shareholders under the scheme of arrangement by an additional 69 cents per share, totalling approximately $1.2 billion.
- This update follows recent news that Origin’s largest shareholder, AustralianSuper, rejected the proposal from the North American consortium led by Brookfield and EIG
- If the revised scheme is approved, the adjusted total cash payout to shareholders under the scheme will be valued at $9.53 per share
- All registered Origin shareholders on November 21 are eligible to vote at the scheme meeting.
- ORG shares are down 5.29 per cent, trading at $8.59 at 11:25 am AEDT
Origin Energy (ASX:ORG) has announced that the Brookfield-led consortium of investors and EIG has increased its cash offer to all Origin shareholders under the scheme of arrangement by an additional 69 cents per share, totalling approximately $1.2 billion.
This update follows recent news that Origin’s largest shareholder, AustralianSuper, rejected the proposal from the North American consortium led by Brookfield and EIG.
AustralianSuper, which owns 13.7 per cent of Origin and has the support of other shareholders, had been seeking a deal price exceeding $10 per share, while the existing offer valued the shares at around $8.80.
If the revised scheme is approved, considering the current AUD/USD exchange rate, the adjusted total cash payout to shareholders under the scheme will be valued at $9.53 per share.
This updated cash payout exceeds the top end of the Independent Expert’s valuation range, which was between $8.45 and $9.48 per share as of June 30, 2023.
“Origin is well-placed to navigate the energy transition over the next decade. However, that path involves considerable uncertainty, with significant levels of capital investment and an uncertain regulatory environment,” ORG Chairman Scott Perkins said.
“As investors operating in an unlisted environment who can take a long-term view on the deployment of capital, we believe EIG and Brookfield will be responsible custodians of Origin’s businesses and are well-positioned to help Australia navigate the challenges that exist in delivering the energy transition.”
As a part of this improved offer, Origin has stated that Brookfield and EIG are restricted from acquiring more than 5 per cent of its shares without having to initiate a new full takeover offer.
The Origin Board has recommended that shareholders vote in favour of the revised scheme at the scheme meeting unless a better proposal emerges and the Independent Expert continues to affirm that the scheme is in the best interests of Origin shareholders.
All registered Origin shareholders will be eligible to vote at the scheme meeting on November 21, 2023.
ORG shares were down 5.29 per cent, trading at $8.59 at 11:25 am AEDT.