$11-Billion Offer To Buy Australia's Biggest Utility Company Crashes

$11-Billion Offer To Buy Australia’s Biggest Utility Company Crashes

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$11-Billion Offer To Buy Australia's Biggest Utility Company Crashes

Origin Energy. Image: oilprice.com.


$11-billion offer to buy Australia’s biggest utility company crashes.

On Monday, a consortium of investors led by Brookfield attempted to acquire Origin Energy, the major energy retailer in Australia.

However, not enough shareholders supported the proposal, and the $11 billion deal fell through.

The Australian firm Origin Energy said today that a mere 68.92% of shareholders had voted in favor of the bid, falling short of the 75% threshold needed to authorize the plan and proceed with the transaction.

Last month, Origin Energy announced that a consortium headed by Brookfield and EIG had offered to buy out the company.

The highest bidder, with an AUS $9.53 per share offer, substantially increased the financial consideration.

Origin Energy received a non-binding and indicative proposal to amend the current Revised Proposal on the evening of November 22 from a consortium of investors led by Brookfield and EIG.

As a result, Origin Energy adjourned the vote to December 4, even though the shareholders were expected to vote on the proposal on November 23.

Pension fund Australian Super, which owns more than 17% of Origin Energy, has stated that it will vote against the acquisition’s proposed conditions.

According to a statement released last month by Australian Super, the company expressed its belief that the current offer is much lower than its assessment of Origin’s long-term worth, citing “this latest low-ball offer” as evidence.

The value and future of Origin would be better served by being in the hands of Australian Super members and other shareholders, rather than a private equity consortium that intends to take advantage of them, according to Australian Super.

In an interview with Reuters published in November, Blair Thomas, CEO of EIG, said that the consortium had concluded negotiations with Australian Super.

Scott Perkins, chairman of Origin Energy, commented on Monday’s vote, saying, “We look forward to the continuing support of our shareholders as we focus on delivering on our strategic priorities, accelerating investment in cleaner energy and storage and pursuing our ambition to lead the energy transition.

” The vote did not receive 75% of the shareholders’ support.

Speaking on Monday, Australian Super stated, as reported by The Wall Street Journal, “We have never wavered in our belief that the value and future value of Origin is better in the hands of members and other shareholders rather than a private-equity consortium seeking a quick return.”


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