Origin board dismiss latest bid, want earlier offer accepted
Make us a preferred source
Make us a preferred source on Google
The news: Origin Energy directors have criticised a revised takeover proposal and urged shareholders to vote for an earlier offer from the same consortium.
The consortium led by private equity firm Brookfield and EIG is trying to overcome opposition to both offers from major Origin investors such as AustralianSuper.
The context: The Origin board said the revised proposal received last week proposed the sale of its energy markets business to Brookfield and a concurrent takeover bid by EIG.
The board asked shareholders to vote against this proposal at its meeting on 4 December as it was incomplete and highly conditional.
The board has continued to encourage shareholders to vote for the earlier offer, for which they would receive $9.39 per share.
What they said: "This latest low-ball offer strengthens AustralianSuper’s view that the offer remains substantially below our estimate of Origin’s long-term value," AustralianSuper said in a media release.
The sources: Origin, AustralianSuper
