Origin Energy, an Australian power generator and retailer, has announced plans to update shareholders regarding the takeover bid led by Brookfield Asset Management. The update will include information on the revised offer price and aims to address concerns raised by investors seeking a higher bid.
According to Origin Chairman Scott Perkins, the composition of the consortium’s offer has changed since the terms were initially agreed upon in March. Previously, the offer consisted of AUD 5.78 and USD 2.19 per share. However, due to fluctuations in exchange rates, Perkins stated that the split between Australian dollars and US dollars has been adjusted.
The company intends to provide shareholders with a comprehensive communication next week, encompassing all the relevant information needed to make an informed decision regarding the proposed takeover. This development comes after Australia’s antitrust regulator approved the consortium’s approximately USD 10 billion acquisition of Origin Energy, a move that was unanimously recommended by Origin’s board.
While the takeover proposal has garnered support from various quarters, including Origin’s board, some stakeholders such as Australian Super, the largest shareholder, argue that the offer undervalues the company. Origin shares were last traded at AUD 9.30.
In addition to the takeover update, Origin also shared positive news regarding its fiscal 2024 outlook. The company’s Chief Executive, Frank Calabria, mentioned that there has been a marginal improvement since the announcement of their fiscal 2023 results in August. Both energy markets earnings and liquefied natural gas production are expected to be stronger. The company now anticipates annual underlying earnings before interest, tax, depreciation, and amortization from its energy markets business to fall within the range of AUD 1.4 billion to AUD 1.7 billion.