Origin Energy Calls Revised Proposal From Brookfield, EIG Incomplete And Complex

Australia’s Origin Energy Limited (ORG.AX,OGFGF.PK) Thursday said its Board of Directors have rejected the revised takeover proposal from the Consortium comprising Brookfield Asset Management (BAM) and MidOcean Energy, an entity managed by EIG Partners.

The company has already entered into a binding Scheme Implementation Deed in relation to the acquisition by the Brookfield-led consortium for total consideration of A$8.912 per share.

In its update on the proposed acquisition by way of a Scheme of Arrangement, Origin said it last week received a non-binding and indicative proposal to amend the current Scheme.

It includes, in the event the Scheme is not approved by the requisite majorities of shareholders, a proposal for a potential alternative transaction involving the sale of the Energy Markets business to Brookfield, subject to a 50 percent threshold shareholder approval. It also includes a concurrent takeover bid by EIG for the shares in Origin, requiring acceptances by shareholders holding at least 50.1 percent of all Origin shares.

According to the company, the revised proposal is incomplete, complex, highly conditional, and does not provide sufficient certainty for Origin shareholders. The pursuit of the proposal would result in an extended timeline.

Further, it would require Origin to accept continuing constraints on the business following an already lengthy period for the current Scheme.

Origin said, “If the current Scheme is not approved by the requisite majorities at the Scheme Meeting on 4 December 2023, Board and management will continue to execute on Origin’s strategy and ambition to lead the energy transition in Australia. Consistent with its duties, the Board will remain open to strategic options…”

In Australia, Origin Energy shares closed Thursday’s trading at A$8.24, down 1.90 percent.

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