Australia’s Origin receives revised takeover offer from Brookfield and EIG

Australian energy firm and APLNG shareholder, Origin, has received a revised takeover offer from a consortium consisting of Canada’s Brookfield Asset Management and a unit of US-based energy investor EIG.

Brookfield and EIG’s LNG unit MidOcean Energy first made an offer in August last year to acquire Origin for A$7.95 cash per share. Subsequently, they raised the offer to A$9.00 cash per share in November last year, and revised this offer again to A$8.90 per share in February this year.

The consortium and Origin entered into a binding deal in March this year and the takeover received approval from Australia’s competition regulator in October.

Brookfield and EIG also recently increased the cash consideration offered to all Origin shareholders under the scheme of arrangement to A$9.43 per share, valuing Origin at about A$20 billion.

Upon closing of the transaction, Brookfield, its institutional partners and investors would own Origin’s energy markets business, Australia’s largest integrated power generator and energy retailer.

Moreover, EIG’s MidOcean would separately own Origin’s integrated gas segment including its upstream gas interests and the 27.5 percent stake in Australia Pacific LNG (APLNG).

Shareholder meeting moved to December 4

Origin announced in a statement that it has received on Wednesday a non-binding and indicative proposal from the consortium to amend the current scheme.

Under the new revised offer, the A$9.43 per share bid remains.

According to Origin, there is now the addition of a potential opportunity for institutional shareholders to re-invest into the Brookfield-owned energy markets business after completion of the scheme.

Also, in the event that the scheme is not approved by the requisite majorities, there is an alternative transaction option, consisting of a sale of energy markets to Brookfield for A$12.3 billion, with a subsequent off market takeover offer by EIG for Origin, subject to a 50.1 percent minimum acceptance condition.

In the event the alternative transaction proceeds, it is proposed that shareholders would receive total cash consideration of up to about $9.082 per Origin share.

The revised offer came just one day ahead of a meeting of Origin shareholders to vote on the scheme.

To allow time to consider the revised proposal and other relevant matters, Origin has determined to adjourn today’s scheme meeting to December 4, it said.

AustralianSuper, which has about 17 percent of shares in Origin, previously rejected the original offer and said it would vote against it.

The firm said in a statement on Thursday that it “will reject the last-minute attempts by the Brookfield and EIG-backed consortium to buy more time in its efforts to acquire Origin.”

AustralianSuper would be voting against the revised proposal for Origin and said this latest “low-ball offer strengthens AustralianSuper’s view that the offer remains substantially below our estimate of Origin’s long-term value.”

Most Popular

PetroVietnam Gas plans to deploy FSRU

PetroVietnam Gas, a unit of state-owned PetroVietnam, plans to deploy a floating storage and regasification unit in Vietnam next year, adding to its Thi Vai LNG import terminal.

Japan’s Osaka Gas, partners to build LNG power plant

The CCGT unit will use regasified LNG as fuel, but it will also be able to consume e-methane in...

PipeChina launches bid process for LNG terminal slots

State-owned LNG terminal operator PipeChina has launched a bidding process, offering access to its LNG terminals.

More News Like This

Peru LNG terminal sent four cargoes in February

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped four liquefied natural gas cargoes in February, one more than in the previous month.

Peru LNG terminal sent three cargoes in January

According to the shipment data by state-owned Perupetro, during January, the 4.4 mtpa LNG plant sent two shipments to...

Origin: APLNG revenue climbs

Origin said in its quarterly report that APLNG revenue reached about A$2.71 billion ($1.69 billion) in the October-December period. Compared...

Peru LNG boosts shipments in 2024

A spokesman for Hunt Oil told LNG Prime that in 2024 "there were 57 vessels equivalent to 205 TBtus."...