Origin delays shareholder vote to consider fresh bid

afr.com:

Origin Energy has postponed Thursday’s shareholder vote on its $18.7 billion takeover after it received a complex new bid, including an alternative transaction the board has called “inferior”.

As reported by The Australian Financial Review, Toronto-based Brookfield and EIG Partners have submitted a lower-price takeover offer for Origin Energy as part of a new, two-headed deal they want the company to put to shareholders.

Origin owns Eraring power station. Michaela Pollock

The new proposal, lobbed on Wednesday night, includes a Plan B that would offer Origin shareholders $9.30 a share in cash should a scheme vote fail, and pinch Origin’s prized energy markets business from under dissident shareholder AustralianSuper’s nose.

Origin’s board said that while a new alternative transaction may present an additional opportunity for shareholders to receive cash value for their shares, it appeared “inferior” to the existing scheme of arrangement.

“The board has significant reservations as to the complexity, conditionality and differing value, and potential adverse tax outcomes to Origin and shareholders, nevertheless the board has a responsibility to fully assess this revised proposal, so it can provide an informed view about its merits or otherwise to shareholders,” Origin said on Thursday.

Under the first part of the revised offer, which applies to the existing scheme of arrangement, institutional shareholders would be able to re-invest in Origin’s energy markets business after it was acquired by Brookfield, with shareholders still receiving about $9.43 per share in cash.

Under the second part of the revised offer, Brookfield and EIG have proposed an “alternative transaction” option if the scheme of arrangement is not approved