Brookfield-EIG consortium’s Origin Energy takeover bid has been defeated, with only 69% of shareholder votes backing the AUD$9.39 per share offer for the gas and electricity business.
Support for the Brookfield-EIG offer fell well short of the 75% minimum of votes required, due largely to major shareholder AustralianSuper’s pushback on the deal, despite the consortium increasing its takeover offer last month.
Related article: AustralianSuper rejects Brookfield’s “unsolicited” Origin offer
“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 to make a quick return based on the proposed scheme terms and we are pleased that this is the outcome,” AustralianSuper said following yesterday’s shareholder vote.
Origin first agreed to Brookfield-EIG’s takeover bid in March this year, with the Australian Competition and Consumer Commission (ACCC) approving it last month.
The consortium had promised to build up to 14GW of new renewable power generation and storage facilities by 2033 by spending between AUD$20-30 billion.
Origin Chairman Scott Perkins said, “Shareholders turned out in significant numbers to have their say on the future of the Origin. Throughout this process, the Board has focussed on ensuring all Origin shareholders recognise that their vote is important.
“While the scheme will not proceed, it was supported by many Origin shareholders. Importantly, this process has made clear the confidence all shareholders have in Origin’s business, assets and people, and its strategic positioning for the energy transition.
“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.”
Related article: Origin’s top shareholder opposes Brookfield’s $15.35b bid
If approved, the scheme would have resulted in Origin splitting into two businesses—an integrated gas business to be owned by EIG’s MidOcean Energy and an energy market business to be controlled by Brookfield.
Origin is responsible for 13% of the National Electricity Market’s generation capacity, and owns Australia’s largest coal-fired power plant, Eraring.
