Origin Energy gets sweetened $10.5-billion bid from Brookfield consortium

said on Thursday it had received a sweetened takeover bid from a Brookfield Corp. consortium, valuing the power producer at 16.40-billion Australian dollars , days after its top shareholder rejected the previous offer., which also includes EIC’s MidOcean Energy, is now offering Origin shareholders 9.53 Australian dollars a share, up 8.2 per cent from the prior offer of 8.81 Australian dollars apiece, and a 5.1-per-cent premium to its last closing price.

“The fact that no competing offer has surfaced in nearly a year, together with the massive premium in our proposal, evidences the fact that we have identified every element of value available,” EIG CEO Blair Thomas said in a statement., saying it was “substantially below” its estimate of long-term value for Australia’s biggest energy retailer.

Origin’s board said it unanimously recommended shareholders vote in favour of the revised deal in the absence of a superior proposal. At 9.53 Australian dollars a share, the new offer is above the 8.45 to 9.48 Australian dollar-a-share valuation range contained in an independent expert’sHowever, the report also outlined a “roll forward” calculation that said Origin’s shares could be worth an additional 40 Australian cents by the time a potential takeover is due to occur. A recent report from Macquarie said the consortium bid should be closer to 10 Australian dollars a share.

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