Origin Energy shareholder rejects fresh Brookfield $10.5 bln bid, shares fall

economictimes.indiatimes.com:

Origin Energy's largest shareholder on Thursday said it would vote against a «best and final» A$16.40 billion ($10.55 billion) offer from a Brookfield consortium for Australia's biggest energy retailer, throwing the deal's future into doubt.

AustralianSuper said in a statement the consortium's A$9.53 per share offer, an 8% increase over the previous A$8.81 apiece bid, remained «substantially below» its estimate of Origin's long-term value.

«AustralianSuper believes Origin has a highly strategic portfolio of assets to participate in, and benefit from, the energy transition,» a spokesperson said.

Origin shares plunged as much as 5.6% to A$8.565 in high-volume trading following the news, as AustralianSuper's 13.68% holding could scupper a deal that requires approval from 75% of the register if not all investors vote.

Hours earlier, the consortium led by Canada's Brookfield, which also includes EIG's MidOcean Energy, said the increased offer was its «best and final» proposal, meaning it cannot be increased unless a rival offer emerged.

Brookfield did not respond immediately to a request for comment after AustralianSuper's announcement.

AustralianSuper, the country's largest pension fund with A$300 billion in assets, on Tuesday had already rejected the prior offer, saying it was «substantially below» its estimate of long-term value as the country moves toward net-zero emissions by 2050.

«If AustralianSuper is rejecting it, the likelihood of the deal going ahead is very low,» said Jamie Hannah, deputy head of investments and capital markets at VanEck, which owns a 0.3% stake in Origin. «I think the deal is back at the drawing board at the moment.»

Should the deal fail at the shareholder vote scheduled for Nov.