Origin Energy [ASX:ORG] received a revised takeover offer from Brookfield valuing Origin at $18.4 billion on an enterprise value basis.
Brookfield, along with its affiliates, first propositioned Origin with a cash offer of $7.79 a share but was turned down. This time, Brookfield returned with an offer of $9 a share, all cash.
That’s a 55% premium to ORG’s last closing price.
ORG shares were up 35% late on Thursday on the news.
Source: Trading View
Origin shares spike on upped bid
Origin is inching closer to being acquired by a consortium led by Brookfield Asset Management.
After a rejected bid of $7.79 cash per share in August, the consortium bumped up its offer to $9 cash per share, a significant premium to Origin’s last closing price.
The new offer values Origin at $18.4 billion.
This value may be subject to a 3-cent increase each month that passes beyond the implementation date.
On the other hand, the price could reduce depending on Origin’s payable dividends.
Origin Chairman Scott Perkins said:
‘This proposal confirms that Origin, its operations and management team represent a highly strategic platform, well-placed to benefit from the energy transition. Our confidence in Origin’s prospects underscored our engagement with the Consortium and delivered a material increase on their initial offer. While the due diligence process advances, we will remain focussed on the successful execution of our strategy.’
Origin board leans toward takeover
Origin’s board is leaning towards accepting the offer, stating:
‘Based on current information and market conditions, if the Consortium makes a binding offer at $9.00 cash per share, then it is the current intention of the Origin Board to unanimously recommend that shareholders vote in favour of the proposal, in the absence of a superior proposal.’
The Age of Scarcity — what to do, how to prepare
Brookfield’s pursuit of Origin highlights just how hot the energy sector is right now.
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Regards,
Kiryll Prakapenka,
For Money Morning
