EIG seeks to ease takeover concerns on Origin LNG

afr.com:

Origin Energy co-suitor EIG Partners has offered an undertaking to the competition regulator that it would not share sensitive information about LNG marketing as the bidders take extra steps to ease the watchdog’s worries about the proposed $18.7 billion takeover.

The commitment by EIG’s subsidiary MidOcean Energy addresses one of the concerns outlined by the Australian Competition and Consumer Commission last month about a “horizontal overlap” in the east coast domestic market that could affect the supply of gas to the east coast should the transaction proceed. The issue was raised by Shell in a submission to the watchdog on the deal.

Origin CEO Frank Calabria in Sydney. Dominic Lorrimer

It comes after the ACCC again delayed the date for its ruling on whether to allow the takeover of one of the country’s biggest electricity and gas suppliers by two North American bidders, Brookfield and EIG. It secured approval from the bidders last Friday to defer the decision – which had been due on September 28 – for another two weeks, to October 12.

Origin’s shares are trading near their highest since the proposed deal was announced, at $8.705 just after midday, up 0.5¢ on the day. The offer for the company was valued at about $8.91 a share when the deal was announced in late March, but varies slightly with exchange rages as part of the payment is in US dollars.

The looming decision on the ACCC approval is expected to lead to an intensification of the simmering debate around the value the takeover offer now represents for Origin shareholders. Macquarie Equities said last week the offer needs to be boosted towards $10 a share or higher to reflect the big lift in Origin’s business and outlook since it was agreed, while Origin