Brookfield consortium trims offer for Origin
Australian energy retailer Origin Energy on February 22 said that a consortium led by Canadian fund managers Brookfield Asset Management has trimmed its offer for the company to A$8.9/share from A$9/share.
Brookfield in partnership with MidOcean Energy, an LNG company formed and managed by EIG, had late last year offered to acquire all the issued shares in Origin at a price of A$9/share. As per the offer, 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).
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The revised offer comes against the backdrop of moves by the Australian government to cap gas prices in order to rein in runaway prices for consumers. Origin said that the revised offer is conditional and non-binding.
“The Origin board considers the revised proposal has the potential to deliver significant value to shareholders, and accordingly, intends to continue to progress discussions with the consortium,” Origin said.
The revised offer comprises A$8.9/share for the first 100,000 Origin shares. For shares above that threshold, shareholders will receive a combination of A$4.334 and a US dollar payment of $3.194/share.
"The consortium has noted that the inclusion of the US$ consideration reflects the underlying exposure of Origin’s Integrated Gas assets and specifically cash distributions from its 27.5% interest in APLNG," Origin said.
Origin is one of the biggest utilities in Australia and is involved in power generation and distribution and gas retailing. It also has a stake in APLNG, a joint venture comprising Origin, ConocoPhillips and China's Sinopec. 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.
Origin recently divested its interest in the Northern Territory’s Beetaloo basin and said it will exit its upstream exploration permits not related to APLNG. EIG in October last year tried to buy a stake in APLNG but the deal was blocked by ConocoPhillips.