Brookfield consortium signs $12.4bn takeover deal with Origin
A consortium of Brookfield Asset Management and MidOcean Energy, a unit of EIG, has signed a binding scheme implementation deed to acquire Australia’s Origin Energy for an enterprise value of A$18.7bn ($12.4bn), it said on March 27.
The revised offer of A$8.91/share represents a 53.4% premium to the company’s unaffected share price. Brookfield consortium had in February trimmed its offer for Origin to A$8.9/share from A$9/share. The final offer price is slightly different from the February revised offer.
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The consideration mix has been amended to comprise A$5.78/share and $2.19/share and applies equally to all shareholders. Based on an assumed A$/US$ exchange rate of 0.70, this implies a total consideration of $8.912/share.
According to the deal, Brookfield would acquire Origin’s energy markets business and MidOcean would acquire the integrated gas business including a 27.5% interest in Queensland-based Australia Pacific LNG (APLNG). APLNG is the largest producer of coalbed methane and supplies gas to Queensland’s domestic gas market, while also processing CBM into LNG for exports.
The deal comes against the backdrop of moves by the Australian government to cap gas prices in order to rein in runaway prices for consumers.