Origin shares drop as AustralianSuper rejects takeover bid
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More news: AustralianSuper has rejected a sweetened takeover bid from Brookfield and EIG for energy giant Origin, saying the improved offer still wasn't enough. Origin shares, which were already down in early trading, dropped further on news of the rejection and were trading 4% lower at $8.70 at around 12.30pm AEDT.
Last month, AustralianSuper increased its holding in Origin by 1.02% to 13.67%, making it the target's biggest shareholder.
What they said: "The offer from the consortium remains substantially below our estimate of Origin’s long-term value," AustralianSuper said in a statement.
"AustralianSuper believes the ongoing energy transition, as we move towards net zero by 2050, has further enhanced the value of strategic energy transition platforms, such as Origin, whether public or private."
Brookfield-EIC lift Origin Energy offer price to $9.53/share
The news: A consortium led by Canada’s Brookfield and US-based EIG has sweetened its offer price for Origin Energy in an effort to salvage the buyout bid.
The numbers: The consortium is now offering $9.53 a share to take over Australia’s top energy retailer and gas producer, an 8.1% improvement from its previous bid price of $8.81 a share. Origin shares closed at $9.07 each on Wednesday.
The context: The sweetened offer comes just days after Origin’s biggest shareholder AustralianSuper said it would vote its 13.67% shares against the takeover scheme, rejecting an independent expert review that found the previous buyout offer price was ‘fair and reasonable’. Other major shareholders had also criticised the offer price, dramatically raising the possibility that Brookfield-EIG's takeover bid would not get the required 75% approval at a shareholder vote. On Thursday, the bidders declared their offer as “best and final”, while Origin Energy said the shareholder vote will proceed as planned on 23 November.
The sources: ASX announcement, AustralianSuper Media Release
