“Due diligence is expected to complete within eight weeks,” Origin said in a statement on Thursday morning. “Should Origin receive any proposals which the board considers may lead to a superior outcome for Origin shareholders,these will be evaluated.”
Origin’s business spans electricity generation,power and gas retailing and a stake in a Queensland liquefied natural gas joint venture,Australia Pacific LNG. The company revealed the takeover offer had followed an earlier indicative bid from the consortium to acquire Origin for $7.95 per share on August 8. The bidders subsequently made another pitch at $8.70 to $8.90 a share,before Origin agreed to participate in talks that led to the $9-per-share bid.
“Our confidence in Origin’s prospects underscored our engagement with the consortium and delivered a material increase on their initial offer,” Origin chairman Scott Perkins said.
Loading
Under the terms of the consortium’s offer,Brookfield would acquire Origin Energy’s domestic energy generation and retailing businesses,while MidOcean Energy – an LNG company formed and managed by EIG – would acquire Origin’s gas business,including its 27.5 per cent interest in Australia Pacific LNG (APLNG).
Brookfield said it would invest an additional $20 billion to fund Origin’s clean energy transition plan,including building more renewable energy.
Stewart Upson,Brookfield’s Asia Pacific chief executive,said the energy transition in Australia presented a “once-in-a-generation” investment opportunity.