Origin Energy Ltd., Sydney, received an $18.4 billion (Aus.) takeover offer from Canadian private equity company Brookfield Asset Management in conjunction with US-based partner EIG.
The bid, to acquire all the issued shares for $9/share, is the third offer from the Brookfield/EIG consortium.
Previously undisclosed offers of $7.95/share and $8.70-8.90/share were made in August and September.
The third offer is an indicative, conditional, and non-binding proposal that has been given provisional approval by the Origin board in the absence of a superior offer.
The indicative proposal is that ultimately Brookfield would acquire Origin’s electricity and gas retailing and supply business while EIG would acquire the integrated gas business.
Brookfield/EIG has been granted the opportunity to conduct due diligence to forward a binding proposal. Due diligence is expected to take 8 weeks.
Origin owns a major power and gas retailing business in Australia along with the country’s largest power station and a 27.5% interest in Australia Pacific LNG’s CSG-LNG plant on Curtis Island near Gladstone in Queensland.