Origin Energy, which supplies electricity and gas to 4½ million customers, is the latest big Australian listed company to head towards private capital hands.
Origin Energy, which supplies electricity and gas to 4.5 million customers, is the latest, big Australian-listed company to head towards private capital hands.
At Origin, buyers Brookfield from Canada, and Washington-based private equity firm EIG Partners, were willing to pay a 50 per cent premium to the company’s share price., while EIG wants Origin’s stake in the Australia Pacific LNG project in Queensland – and then the behind-closed-doors private capital fix-up job could begin.
To achieve it will take huge investment in renewable energy projects. Brookfield has said it will require at least $20 billion of investment in new build renewables and storage, with 14 gigawatts of capacity. For context, that’s the equivalent of almost five Eraring power stations, or about 30 Stockyard Hill Wind Farms.
Brookfield’s strength, according to Carney, is its development experience, access to capital and required materials, and its ability to do it all as quickly and decisively as possible. The Canadian investment house is a top five developer and operator globally; a clean green energy super major.“Origin doesn’t have the capital to do this, and in the timeframe required,” Carney says, giving a unique insight into the head of a private capital investment giant.
Carney’s been in Australia this week meeting federal, NSW and Victorian government ministers and Treasury officials, and pitching the regulators whose approval is required if the deal is to happen.The Australian Competition and Consumer Commission’s approval is the biggest potential obstacle, and even those connected to the deal concede it could be a lengthy process.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside Origin Energy’s $18.7b private capital jobFormer Bank of England governor Mark Carney explains why he wants to own Australia’s biggest electricity retailer, and what he plans to do with it.
Read more »
Brookfield seals deal for wind farm to grow Origin’s capacityThe deal is Brookfield’s first renewable energy acquisition and will supplement the private equity giant’s bid for Origin Energy.
Read more »
Brookfield seals deal for wind farm to grow Origin’s capacityThe deal is Brookfield’s first renewable energy acquisition and will supplement the private equity giant’s bid for Origin Energy.
Read more »
Largest heroin seizure in Queensland found inside concrete blocksFederal police say the seizure, which has a street value of about $268 million, is the second-largest heroin shipment ever detected in Australia.
Read more »
'Never seen this many': Warning after shocking find inside green turtleA New South Wales vet has issued a warning to fishermen ahead of the long-weekend after making a shocking find inside a green turtle. 9News
Read more »
'Never seen this many': Warning after shocking find inside green turtleThe turtle was found in a 'bad way' and was rushed to Taronga Wildlife Hospital where vets performed the 'difficult and delicate surgery.' 9News
Read more »