AustralianSuper has rejected an eleventh-hour and unsolicited offer from the Brookfield and EIG consortium and confirmed that it will be voting against the takeover of Origin Energy (Origin).
Through the letter, the consortium offered the Australian superannuation fund to support the proposed acquisition of the Australian electricity generator.
AustralianSuper said that its position will remain unchanged for the upcoming vote on 23 November 2023, calling the offer as substantially undervaluing Origin.
The fund believes that the ongoing energy transition has further enhanced the value of strategic energy transition platforms, such as Origin and will vote against the takeover by the consortium.
AustralianSuper, in its statement, said: “AustralianSuper is a long-term investor in the Australian economy and is open to providing capital to assist Origin as it prepares to transition over the coming decades while delivering on our purpose to help members achieve their best financial position in retirement.
“The challenge facing the nation as we work towards Net Zero by 2050 is not a lack of capital but rather a shortage of good-quality investment opportunities.”
AustralianSuper is the largest shareholder of Origin, with around 13.68% of its shares.
In March this year, a consortium led by Brookfield Renewable Partners signed a scheme implementation deed (SID) to acquire Origin Energy in a deal worth A$18.7bn ($11.74bn).
The consortium comprises Brookfield, its institutional partners and institutional investors, GIC and Temasek, and EIG-backed MidOcean Energy.
Last month, AustralianSuper opposed a previous offer by the Brookfield-led consortium to acquire Origin Energy for A$15.35bn ($9.86bn), as the purchase price undervalues Origin.
The consortium made a revised bid to acquire Origin at a price of A$9.53 ($6.12) per share compared to the previous A$8.81 ($5.66) apiece bid.
Earlier this month, AustralianSuper announced its plans to vote against the sweetened offer by the Brookfield consortium to acquire Origin Energy for A$16.4bn ($10.54bn).
Based in Australia, Origin Energy is an integrated power generator and energy retailer and is said to have a 24% market share of the national electricity market.
