Brookfield’s $10.6 billion bid for Origin Energy expected to fail on Monday By Reuters

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<span>© Reuters. File photo: Miniatures of windmill, solar panel and electric pole are seen in front of Brookfield Renewable logo in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration/File photo</span><br />
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<p>By Scott Murdoch</p>
<p>SYDNEY (Reuters) -The outcome of a Brookfield consortium’s $10.6 billion bid for Australia’s Origin Energy will be officially known on Monday, with investors expected to vote down its year-long attempt to buy the country’s largest power retailer.</p>
<p>Origin’s shares shed 3% to A$7.94 in early trade Monday ahead of the vote, a fresh-nine month low for the company, indicating investors expect Brookfield and its bidding partner EIG to walk away after the vote.</p>
<p>Origin’s largest shareholder, A$300 billion ($198 billion) pension fund AustralianSuper, has said it would reject the A$9.39 per share offer.</p>
<p>AustralianSuper owns about 17% of Origin, which should be enough to block the bid that requires at least 75% support from the votes cast at the investor meeting in Sydney. </p>
<p>Origin said on Nov. 23, when the vote was adjourned after the consortium lodged a revised proposal, that proxy votes showed the bid would have failed to win had the meeting gone ahead.</p>
<p>“The market has already factored in the bid failing and the stock is roughly fairly valued in our opinion, so I wouldn’t expect much impact if the bid fails,” said Morningstar analyst Adrian Atkins.</p>
<p>“If the Brookfield consortium comes back with a hostile off-market offer, there could be upside to the share price.”</p>
<p>Luke Edwards, Brookfield Australia head of renewable energy and transition, said on Friday if the deal was voted down the consortium would need to consider whether a new government plan to reshape energy markets negatively impacted its view of Origin’s value.</p>
<p>“We will do this work before considering whether to continue pursuing a proposal to acquire Origin Energy or the Origin Energy Markets business,” he said.</p>
<p>Origin did not respond to a request for comment ahead of the vote.</p>
<p>The company’s board last week rejected a revised back-up bid from the Brookfield consortium that the energy firm said was too complex and highly conditional.</p>
<p>($1 = 1.5124 Australian dollars)</p>
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