In today’s briefing:
- Origin/Brookfield: ACCC Rubber Stamped. Now Shareholders Will Have Their Say
- Origin Energy (ORG AU): ACCC Approves, Shareholders Justifiably Want a Bump
Origin/Brookfield: ACCC Rubber Stamped. Now Shareholders Will Have Their Say
- Brookfield Asset Management/MidOcean Energy’s tilt for Origin Energy (ORG AU), faced two major hurdles.
- The first was ACCC approval. Not just over competition issues, but also the perceived/apparent public benefit from Brookfield’s future commitment to renewable generation. ACCC has now cleared the transaction.
- The second is currying favour with shareholders, several of whom, including AustralianSuper (13.68% stake), reckon the Offer is substantially below long-term value. This needs a bump.
Origin Energy (ORG AU): ACCC Approves, Shareholders Justifiably Want a Bump
- The ACCC has approved Brookfield/EIG’s proposed acquisition of Origin Energy (ORG AU). The Brookfield/EIG offer is A$5.78 and US$2.19 per share, worth A$8.83 at the last close.
- The bidders now face the challenge of convincing shareholders to accept the offer and avoid incurring ticking fees. The scheme booklet will be despatched in the coming weeks.
- Several shareholders have justifiably argued that the offer is light. Our SoTP valuation is A$9.46 per share, 7.1% above the implied offer price of A$8.83.
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