AustralianSuper, which was instrumental in the rejection of a $20 billion takeover on Tuesday, offered to provide capital to help the country’s biggest electricity and gas supplier fund its transition.
Already a subscriber?Origin Energy’s biggest shareholder,
“We have never wavered in our belief that the value and future value of Origin is better in the hands of members and other shareholders rather than a private equity consortium seeking to make a quick return based on the proposed scheme terms, and we are pleased that this is the outcome,” an AusSuper spokesman said.
“Is AusSuper actually going to step in at this point and provide some actual funding or are they going to go to the market, use some of the cash flows and increase the production and pace of their energy transition?” “I think the two businesses can stand on their own two feet and having them separate would go some way to appeasing some shareholders who are concerned around the earnings of the one subsidising what could be a significant investment cycle for the other.”Votes cast in favour of the buyout by Brookfield and EIG fell short of the minimum 75 per cent acceptance required for the transaction. After the final proxies were tallied, 68.92 per cent voted in favour.
Most of the retail shareholders that spoke at the meeting voiced opposition to the deal because they did not want to see Origin pass into foreign ownership, rather than on the value grounds argued by AusSuper.
AusSuper welcomed shareholders’ rejection of the deal, underscoring its view about Origin’s “highly strategic portfolio of assets” that it said was shortchanged by the offer.“With the shareholder vote now finalised, we are looking forward to working with Origin’s board and executive team as they look to execute their strategy and ambition to lead Australia’s energy transition,” a spokesman said.
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