By Stuart Condie
SYDNEY–Origin Energy’s largest shareholder said it rejected an offer to join the Brookfield Asset Management-led consortium trying to buy the Australian power retailer and generator.
AustralianSuper on Monday said that the consortium had offered it the chance to discuss taking an interest in Origin on successful completion of a proposed takeover worth around US$10.50 billion.
AustralianSuper, which is Australia’s largest superannuation fund, rebuffed the approach and said it still intended to vote its 15% holding against the takeover. The consortium needs 75% of shareholders to vote in favor of the offer at a Nov. 23 meeting.
“We believe the offer remains substantially below our estimate of Origin’s long-term value,” an AustralianSuper spokesperson said.
The consortium this month raised its takeover offer to 9.53 Australian dollars (US$6.06) per share, which values the company at A$16.41 billion. The revised offer is some 8% higher than the cash consideration of A$8.81 per share outlined in bid documents when Origin agreed to the acquisition in March.
Origin said the A$9.53/share offer represented the consortium’s best and final proposal unless a rival bidder emerges. Origin’s shares were at A$8.80 shortly before Monday’s close.
Write to Stuart Condie at [email protected]
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