Origin Energy chairman Scott Perkins talked a good game last week when the independent experts’ report from Grant Samuel deemed the $18.7 billion takeover offer lobbed by Brookfield and EIG for the energy group both fair and reasonable.
Brookfield has outlined plans to spend another $20 billion to $30 billion on renewable energy projects. In short, if Brookfield doesn’t lift its offer to placate disgruntled shareholders and the takeover fails, it could hurt Australia’s green energy push, which, as Perkins told investors last week, is facing significant challenges.
And as Origin boss Frank Calabria said last week, a failed bid will do nothing to ease any of these headaches due to the vast difference between Brookfield’s proposed green investments, with a price tag of“Our plan, and our strategy that we released last year to the market, had us targeting five gigawatts by 2030,” Calabria said.“We could not invest, on our own, that amount … in that timeframe. But clearly, they’ve set that ambition much more strongly.
Morningstar analyst Adrian Atkins said the current $8.81 a share deal, based on current exchange rates, offers no compelling reason for Origin’s management to sell at such a small premium to intrinsic value.
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