AusSuper rejects eleventh-hour offer to join Origin bid

afr.com:

AustralianSuper, the biggest shareholder in Origin Energy, has swiftly rejected an eleventh-hour offer to join Brookfield and EIG in their agreed $20 billion takeover of the major electricity supplier, leaving the deal hanging by a thread.

The Canadian infrastructure giant and its US-based partner wrote to AusSuper on Monday morning offering the option to join them as buyers of Origin in an effort to overcome the industry fund’s opposition to the takeover that may lead to it being rejected at a shareholder vote next week.

Origin Energy CEO Frank Calabria is recommending shareholders vote for the deal. Dominic Lorrimer

However, the offer was rejected within a couple of hours by AusSuper, which on Monday reiterated its decision to vote its 15.03 per cent stake against the deal.

AusSuper described the offer in a statement as “eleventh hour and unsolicited”.

“AustralianSuper’s position is unchanged on the upcoming vote on 23 November 2023, as we believe the offer remains substantially below our estimate of Origin’s long-term value,” it said.

“The fund will be voting against the takeover scheme from the Brookfield and EIG-backed consortium as AustralianSuper believes the ongoing energy transition has further enhanced the value of strategic energy transition platforms, such as Origin.”

The takeover of Origin by Brookfield and EIG requires 75 per cent approval from voting Origin shareholders, a threshhold that is difficult to achieve given not all shareholders will vote.

More to come.