Brookfield, MidOcean proposes Origin Energy shares acquisition

The proposal is priced at A$9 per share or a total of A$18.4b.

Brookfield Asset Management and LNG firm MidOcean Energy formed a consortium to acquire all the issued shares of Origin Energy for A$9 per share or A$18.4b.

In a statement, Brookfield said the proposal is in line with its strategy of investing in areas where they can contribute to the energy transition which includes decommissioning of thermal assets and developing new clean generation.

“Through this transaction, we can leverage our access to capital and clean energy capabilities to support the transition from carbon-intensive generation sources to additional renewable energy,” said Brookfield Asia Pacific CEO Stewart Upson. 

“This would represent a significant contribution towards Australia’s net-zero transition objectives, all while generating attractive risk-adjusted returns for our investors,” he added.

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Meanwhile, Origin said under the indicative proposal, Brookfield will acquire its Energy Markets business, whilst MidOcean will acquire the Integrated Gas business.

It has entered into a confidentiality and exclusivity agreement with the consortium and the Board plans to grant its conduct of due diligence to come up with a binding proposal.

The Board currently intends to unanimously recommend to the shareholders to vote in favour of the proposal if there will be no superior proposal.

Origin said the price payable under the proposal will be reduced by the among of any dividend it paid prior to the implementation. On the other hand, the price would increase by $0.03 per month if the implementation takes place later than 15 May 2023.