Origin Energy suitors put another $1.2 billion on the table

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Origin Energy’s suitors Brookfield/EIG have raised their offer for Australia’s biggest energy retailer, in a bid to get the takeover across the line.

The takeover target on Thursday said the Brookfield-led consortium has bumped up its offer from $8.91 a share to $9.53 a share.

The revised offer, now worth an extra $1.2 billion, comes after Origin’s biggest shareholder, AustralianSuper, rejected the $8.91 a share put forward by the Brookfield-led consortium.

The result marks a turnaround for Origin.Credit: Bloomberg

AustralianSuper, which holds a 13.7 per cent stake in Origin, on Monday said that the consortium’s offer fundamentally undervalued Origin and its assets. The Brookfield-led consortium needs 75 per cent of Origin’s shareholders to approve its offer.

Origin chairman Scott Perkins said on Thursday that the sweetened offer fully reflected the energy company’s assets and its “strategic positioning for the energy transition.”

“The revised consideration is now above the top end of the independent expert’s valuation range, allowing all shareholders to receive a certain cash value for their Origin shares.”

“We encourage all shareholders to vote in favour of the scheme,” Perkins said.

Advisory firm Grant Samuel, in its report, has valued Origin’s shares between $8.45 and $9.48 a share.

However, some in the market still believe that Origin could be worth more, with Macquarie analysts estimating the company could be worth over $10 a share.

Origin shares closed Wednesday’s session at $9.07.

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