Origin Energy's Largest Shareholder Rejects Offer

Australia's largest superannuation fund, AustralianSuper, has rejected an offer to join the Brookfield Asset Management-led consortium attempting to acquire Origin Energy, the Australian power retailer and generator. The consortium had offered AustralianSuper the opportunity to discuss taking an interest in Origin upon successful completion of the proposed $10.50 billion takeover. However, AustralianSuper intends to vote its 15% holding against the takeover, stating that the offer is well below their estimate of Origin's long-term value. The consortium needs 75% of shareholders to vote in favor of the offer at a meeting on November 23.

Revised Takeover Offer

The consortium recently increased its takeover offer to AUD 9.53 per share, valuing Origin at AUD 16.41 billion. This revised offer represents an 8% increase from the initial bid documents outlined in March when Origin agreed to the acquisition. Unless a competing bidder emerges, Origin stated that the AUD 9.53 per share offer is the consortium's best and final proposal. Prior to Monday's market close, Origin's shares were valued at AUD 8.80.

By Stuart Condie