By Stuart Condie
SYDNEY–Origin Energy’s largest shareholder will vote against the Australian company’s takeover by a Brookfield Asset Management-led consortium, saying its near US$10 billion proposal significantly undervalues the energy retailer and generator.
AustralianSuper, which holds a near 14% stake in Origin, on Tuesday said that the deal’s valuation multiples are significantly lower than those in recent relevant transactions and the trading multiples of comparable companies.
Origin’s board has unanimously recommended the consortium’s offer, under which Origin shareholders will receive about 8.81 Australian dollars (US$5.62) a share. AustralianSuper, Australia’s largest superannuation provider with about A$300 billion in assets under management, is among several shareholders to express misgivings over the valuation.
Origin shares last traded at A$9.17, up 19% so far this year amid takeover interest and elevated power prices.
“AustralianSuper believes the ongoing energy transition, as we move towards net zero by 2050, has further enhanced the value of strategic energy transition platforms such as Origin,” AustralianSuper said in a statement.
The consortium’s offer was valued at A$8.91 when terms were agreed in March, but Origin has since paid out A$0.365 a share in dividends.
Origin this month said that once currency moves and the offer’s mix of Australian and U.S. dollars are taken into account, the proposal was valued at A$9.15 on a March basis.
Shareholders are scheduled to vote on the proposal on Nov. 23.
Write to Stuart Condie at [email protected]
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