Australian superannuation fund AustralianSuper is planning to vote against the increased takeover offer of A$16.4bn ($10.54bn) for Origin Energy by a consortium led by Brookfield.
According to AustralianSuper, the consortium’s best and final takeover proposal is significantly below Origin Energy’s estimated long-term value.
The superannuation fund is the biggest shareholder in Origin Energy, with a stake of 13.67%.
AustralianSuper said: “AustralianSuper believes the ongoing energy transition, as we move towards net zero by 2050, has further enhanced the value of strategic energy transition platforms, such as Origin, whether public or private.
“AustralianSuper will always look at opportunities to invest in compelling long-term energy transition opportunities that deliver for members.”
Earlier this week, AustralianSuper opposed the Brookfield-led consortium’s previous offer of A$15.35bn ($9.86bn) for Origin Energy, considering that the deal substantially undervalues the energy company.
Under the revised bid, the consortium offered to pay A$9.53 ($6.12) per share compared to the previous A$8.81 ($5.66) apiece bid.
In March this year, the Brookfield-led consortium signed a scheme implementation deed (SID) to acquire Origin Energy in a deal worth A$18.7bn ($11.74bn).
The consortium included Brookfield’s institutional partners and institutional investors GIC and Temasek and EIG-backed MidOcean Energy.
As per the terms of the SID, shareholders of the publicly-listed Origin Energy were to be paid A$8.91 per share. The consideration was at a premium of 53.4% to the firm’s unaffected share price.
Based in Australia, Origin Energy is an integrated power generator and energy retailer. The firm is said to have a 24% market share of the national electricity market.
Besides, the Australian energy company holds a 27.5% stake in the Australia Pacific LNG project (APLNG).
