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Origin Energy (ORG)

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Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked 04/11/2023

Origin Energy (ORG)

Hi MM Can you please explain how the revised Brookfield consortium offer of an additional 69c for each Origin share sits with the share price falling 60c today? The closing price today was $8.47 today while the offer is nominally $9.53. The offer looks like good value but I'm missing something... not sure what! Thanks Rob Hi Shawn I currently hold ORG and there is a scheme of arrangement coming up for voting. The offer price is $8.95 but currently, the market price is $9.20. Is the market expecting a higher offer price and if so why are they still asking for a vote on the old price? How much do you think the fair price should be and is the market expecting another suitor or higher price? Thank you Boon

Answer

Hi Rob,

When Brookfield made the revised offer, they called it their best and final, yet AusSuper have said they will not accept, and they have a blocking stake. When a potential acquirer calls it best and final, they cannot legally increase it. The only way this deal will happen at $9.53 is if AusSuper change their mind, which seems unlikely as they have been strong in saying the stock is worth more.

Hi Boon,

Yes, the market had moved a lot since that original price was floated, and it was widely expected that Brookfield would need to pay more, hence the premium. More water has travelled under the bridge since than, as covered above.

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Origin Energy Ltd (ORG)

LAST UPDATED 03/11/2023 15:27

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