Brookfield's $12.8-billion Origin bid rejected by investors
Origin Energy Ltd. rejected a A$19.1 billion (US$12.8 billion) Brookfield Asset Management Ltd.-led takeover, after the fund’s yearlong pursuit of a utility that’s vital to Australia’s energy transition.
About 69 per cent of ballots cast by investors were in support of the deal, below the required threshold of three-quarters of the votes, Origin said Dec. 4 in a statement, following a shareholder meeting.
The utility will “focus on delivering on our strategic priorities, accelerating investment in cleaner energy and storage and pursuing our ambition to lead the energy transition,” Origin chairman Scott Perkins said in the statement.
Origin’s largest investor AustralianSuper, which holds about 17 per cent of the company, had opposed the offer as too low, effectively blocking the prospects for an acquisition. The intervention by Australia’s largest pension fund showcased an increasingly assertive approach from managers of the country’s A$3.5-trillion retirement savings pool.
“The value and future value of Origin is better in the hands of members and other shareholders rather than a private equity consortium seeking to make a quick return,” AustralianSuper said in a statement.
Origin’s shares fell 3.9 per cent to A$7.86 Monday, before trading was halted ahead of the vote.
Brookfield and EIG Global Energy Partners, which made a first offer in November last year, revised their proposal last month and the deal value was A$9.39 a share, based on Wednesday’s exchange rate, Origin said last week.
Origin’s board had supported the proposal, though last week rebuffed a suggested alternative transaction under which Brookfield would pay A$12.3 billion for the company’s energy generation and retailing business in the event of an
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