AustralianSuper rejects Brookfield’s offer to join Origin for $10.5 billion. On Monday, AustralianSuper, an Australian pension fund, said it had turned down an “eleventh-hour” offer from a consortium led by Brookfield and its partner EIG to remove its resistance to their $10.5 billion bid for Origin Energy and join the takeover. The offer was made at the “eleventh hour” of the takeover process.
The largest pension fund in Australia reiterated its decision to reject the offer at the shareholder meeting on November 23, hours after receiving the consortium’s “unsolicited” proposal.
“AustralianSuper’s position is unchanged on the upcoming vote, as we believe the offer remains substantially below our estimate of Origin’s long-term value,” a company spokeswoman stated.
Even though it has done so in prior press releases, AustralianSuper did not disclose the extent of its interest in Origin Energy while claiming to be the company’s largest stakeholder.
Late Monday night, the Australian Financial Review reported that the fund had increased its holding from 15% to 16.5% of the company. The Australian Super Organization did not wish to comment.
The developments come a little less than two weeks after the A$300 billion fund rejected an enhanced “best and final” A$9.53 per share deal from the company. This development threatens to derail the takeover of Australia’s largest energy retailer.
Even though AustralianSuper’s holding is lower than the one-quarter level that must be met to block a bid, the fact that retail shareholders, who account for around one-third of the stock, tend to have a low turnout lends the fund’s stake more weight.
Brookfield contends that their offer to acquire Origin Energy, which comes with a pledge to invest between A$20 and A$30 billion, will decarbonize the firm more quickly than if it were to stay in the hands of the government.
“We are offering a clear pathway to a faster reduction of the company’s emissions and an acceleration of Australia’s net zero targets,” Luke Edwards, the Managing Director of Renewable Power and Transition at Brookfield, said in a statement. “We’re offering a clear pathway to a faster reduction of the company’s emissions.”
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