Join our daily newsletter At The Bell to receive exclusive market insights
- Origin Energy (ORG) receives an $18.4 billion takeover bid from Canada-based Brookfield Asset Management and private equity firm MidOcean Energy
- The $9-per-share offer represents a 55 per cent premium to Origin’s last closing share price and comes after the buyers raised their original offer of $7.95 per share twice
- Origin has opened its books to the buyers for due diligence and says it plans to recommend the deal should it progress to a binding offer
- The company expects Brookfield and MidOcean to complete their due diligence work within eight weeks
- Shares in Origin Energy are up 33.1 per cent to trade at $7.73 at 11:03 am AEDT
ASX-listed gas giant Origin Energy (ORG) has received an $18.4 billion takeover bid from Canada-based Brookfield Asset Management and private equity firm MidOcean Energy.
Origin has opened its books to the consortium of buyers and this morning told investors it planned to recommend the deal if a binding offer was made.
The Brookfield-led consortium has offered $9 per share for full control of Origin — a 54.9 per cent premium to the last ORG closing share price of $5.81 and an 60.6 per cent premium to ORG’s one-month volume-weighted average price.
The buyers first offered $7.95 per share in August, then bumped this offer to between $8.70 and $8.90 per share in September.
Today’s final $9-per-share price followed months of negotiations between the businesses.
“This proposal confirms that Origin, its operations and management team represent a highly strategic platform, well-placed to benefit from the energy transition,” Origin Chairman Scott Perkins said.
“Our confidence in Origin’s prospects underscored our engagement with the consortium and delivered a material increase on their initial offer.”
Meanwhile, Origin CEO Frank Calabria said the offer followed a series of “important strategic initiatives” executed by Origin over the past year to strengthen its balance sheet and sharpen its focus.
“We believe Origin is in a strong position to lead the energy transition, capture opportunities and create value for shareholders,” Mr Calabria said.
Origin said it expected the buyers to complete their due diligence within the next eight weeks before deciding whether to progress to a binding proposal.
Shares in Origin Energy were up 33.1 per cent to trade at $7.73 at 11:03 am AEDT.
