‘No stone unturned’: Brookfield ups campaign on Origin bid
Brookfield and EIG are ramping up their campaign to convince Origin Energy shareholders of the merits of their sweetened $20 billion takeover offer, in an effort to secure the 75 per cent support they need despite opposition from the major electricity and gas supplier’s biggest investor.
The North American bidders have hired Alliance Advisors to lobby Origin shareholders on the need to have their voices heard on the deal, which is at risk of collapse given the rejection of the $9.53-a-share offer by AustralianSuper. The industry fund increased its stake last week to around 15 per cent.
Brookfield Asia Pacific CEO Stewart Upson has a fight on his hands to win enough Origin shareholder support for the takeover deal. Natalie Boog
Luke Edwards, head of Brookfield’s renewable power and transition business in Australia, said it was clear that AusSuper’s interests were not aligned with those of the company and its shareholders.
He pointed to “a lot of positive feedback” from shareholders across Origin’s register since Brookfield and EIG lifted their offer by 8 per cent last Thursday.
“A lot of shareholders think this is a great price for the company and they want to support the deal, and they are seeing AusSuper standing in the way of their premium,” Mr Edwards said.
“That’s why it’s so important for us to make sure that we leave no stone unturned, to make sure every shareholder knows what they are missing out on if they vote no, and make sure every shareholder turns up and votes, and makes their vote count.”
The deal, which is unanimously backed by Origin’s board, goes to a vote in Sydney on November 23. But given shareholder participation in such scheme votes is typically well below 100 per cent – and perhaps up to about 80
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