AustralianSuper has rejected an 11th-hour overture from the Brookfield and EIG consortium to join their takeover of energy giant Origin.
Origin Energy’s shareholders have been told the takeover target’s share price will suffer if they vote down the $20 billion bid from Brookfield/EIG.
Influential shareholder advisory firm ISS has backed North American consortium Brookfield and EIG’s bid to take over power giant Origin Energy.
The latest twist in the country’s largest corporate deal comes as AustralianSuper confirmed it has increased its ownership of the power giant,building its stake to 15.03 per cent.
While AustralianSuper’s reasons to reject the sweeter offer are valid,it probably hasn’t made any friends with Origin’s other shareholders.
Origin’s biggest shareholder has rejected Brookfield/EIG’s ‘best and final’ bid for Australia’s biggest energy retailer despite a sweetened offer of $9.53 a share.
Suitor Brookfield has pledged to spend billions more on renewable energy investments,which is way higher than the target can outlay.
The inescapable reality is that at this price,the bid for Origin Energy is doomed to fail.
Origin Energy chairman Scott Perkins says his board will do what it can to ensure investors are happy with Brookfield’s takeover bid.
The competition watchdog has approved the acquisition of Australia’s largest energy retailer,but large shareholders think the bid undervalues the company.
NSW’s planning department is “actively hostile” to renewables,industry says.