Pension fund opposes Brookfield-led bid for Australian company Origin Energy
BNN Bloomberg
A vote by shareholders of Australian's Origin Energy Ltd. on a takeover offer by a Brookfield-led consortium of investors and EIG has been delayed after the utility's largest shareholder voiced opposition to the proposal.
Pension fund manager AustralianSuper says it holds a stake of more than 17 per cent in Origin and that it will vote against the offer.
The consortium has made a revised offer valued at US$10.6 billion, excluding debt, that would allow institutional shareholders to reinvest in the business. If it is not approved Brookfield has proposed an alternative to buy Origin's energy markets business, while EIG would buy the other assets.
AustralianSuper has called the bid a "lowball offer" that strengthens its view that it "remains substantially below" its estimate of Origin’s long-term value.
