Following more than three months of due diligence,the bidders on Wednesday said they had submitted a revised proposal – still conditional at this stage – to acquire Origin’s shares at a slightly lower price.
Analysts have previously flagged doubts that the takeover bid would proceed at the initial price after the Albanese government in December unveiled anemergency package to tame soaring east-coast energy bills,which could affect domestic and overseas gas sales from Origin Energy’s part-owned Queensland liquefied natural gas venture,Australia Pacific LNG (APLNG).
The government has set a cap on the domestic gas price at $12 a gigajoule for 12 months and intends to introduce a longer-term requirement for supply contracts to be struck at “reasonable” prices beyond the end of the year.
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“This creates increased potential for a price revisit by the consortium,in our view,” Royal Bank of Canada analyst Gordon Ramsay said last week.
Potentially more significant factors behind the revision are expected to have included large swings in commodity prices and currency since the first offer was lobbed,as Origin’s APLNG venture is a US-denominated business.
As the talks between Origin’s board and the bidding consortium continue,expectations are building that a result is likely to be reached by March.