Brookfield plays higher power price card in fight for Origin

afr.com:

Canada’s Brookfield says AustralianSuper must be factoring in higher energy prices for consumers and running Origin Energy’s coal-fired power station for longer in its finding that the $20 billion takeover bid from Brookfield and partner EIG undervalues Origin.

Luke Edwards, head of renewable power and transition in Australia for Brookfield, which is struggling to secure the support it needs from Origin shareholders for the $9.52-a-share takeover deal, said those two factors seemed to be the only ones that could explain the industry fund’s reasoning that the offer substantially falls short of Origin’s long-term value.

Brookfield Asia-Pacific CEO Stewart Upson faces a battle to win Origin shareholder approval for the deal. Michael Quelch

AustralianSuper, which holds 16.5 per cent of Origin, has resolved to vote against the deal, putting the 75 per cent shareholder approval it needs at the November 23 meeting seriously in doubt.

“They’re assuming that power prices are going to be higher for longer, and therefore customers pay more for their power, and that Eraring will have to run for longer – that’s my view,” Mr Edwards said in an interview in which he underscored Brookfield’s commitment to investing in Origin’s – and Australia’s – energy transition.

The comments come as Origin’s second-biggest shareholder, Perpetual, reinforced market expectations it will also vote against the deal, throwing its weight behind AustralianSuper’s campaign at a conference on Monday.

Vince Pezzullo, head of Australian equities at Perpetual which owns 2 per cent — 3 per cent of Origin, declared at a Conexus Financial event for super fund chief investment officers in country Victoria that Perpetual supported AusSuper’s position that Origin is