Origin’s near-$20b deal wins support from second influential proxy firm
A major proxy adviser with significant sway over Origin Energy investors has recommended they back a near-$20 billion takeover proposal for the electricity and gas giant despite describing it as an “uphill battle” given opposition from the company’s largest shareholder.
CGI Glass Lewis said there was “sufficient evidence” to support Origin’s view that the offer from the North American suitors was “attractive” adjusted for the risks involved with the energy transition. The takeover is opposed by AustralianSuper, which controls 15 per cent of the register.
Origin chairman Scott Perkins is urging shareholders to vote for the takeover. Oscar Colman
CGI Glass Lewis said that the industry superannuation fund appeared to rely on a more positive outlook on the long-term value drivers for the business. Agreeing with that or not came down to individual perceptions of the market and tolerance to risk, it told clients.
The offer of $9.53 a share for Origin, which was increased last week by the bidders, now tops the upper end of the valuation range for the company given by independent expert Grant Samuel, and “ultimately offers investors certainty of value at a level that is within a reasonable range, all things considered,” the firm told its clients.
CGI Glass Lewis counts about 44 per cent of the Origin shareholder base as subscribers, more than any other proxy advisory. Institutional Shareholder Services has advised clients to support the takeover, which requires 75 per cent support from voting shareholders at a meeting this month to succeed, a threshold that is difficult to reach given AustralianSuper’s position.
“Moreover, we are hesitant to recommend that shareholders supplant the conclusions of the company’s independent
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