AustralianSuper raids Origin Energy again, hits 16.5pc
AustralianSuper, already Origin Energy’s largest shareholder, has upped its stake in the electricity and gas giant ahead of a crucial shareholder vote.
Origin CEO Frank Calabria. Oscar Colman
The super fund giant had been in the market for 10.35 million shares, or 0.6 per cent of Origin, and preparing to spend up to $92.6 million on Monday evening at $8.95 a piece via Macquarie. The price is 1.9 per cent higher than the last Origin close price at $8.78 per share.
And it all happened quickly. Books opened at 4.30pm on Monday. Registration offers were called for by 5.30pm and a close time set for 6pm. The book was more than covered at $8.95. All up, AustralianSuper’s holding in the company is expected to jump to 16.5 per cent.
The move came shortly after AustralianSuper said that it had rejected “an eleventh-hour and unsolicited letter” from Brookfield and EIG to join their takeover bid for the company. The consortium has offered $9.53 per share.
The super fund reaffirmed its intention to vote against the proposed $20 billion Brookfield/EIG takeover scheme in what’s expected to be a nail-biting vote on November 23, in a term sheet seen by Street Talk.
The fund reiterated that the offer “remains substantially below our estimate of Origin’s long-term value”.
“AustralianSuper believes the ongoing energy transition has further enhanced the value of strategic energy transition platforms, such as Origin,” it told investors. “AustralianSuper is a long-term investor in the Australian economy and is open to providing capital to assist Origin as it prepares to transition over the coming decades ...”
The takeover has, however, won support from all major proxy advisers. The transaction requires 75 per cent support from voting Origin
Read more on afr.com
