Origin's (ASX:ORG) share price skyrockets following AU$18.4B takeover offer

November 10, 2022 01:46 PM AEDT | By Sonal Goyal

Image source: © Rafaelhenriquepress | Megapixl.com

Details of the indicative proposal

Brookfield, along with its affiliates and their managed funds and MidOcean Energy, has proposed a bid to acquire 100% issued shares in Origin at a price of AU$9 cash per share. According to the proposal, Brookfield would acquire the energy market business of Origin and MidOcean would buy the integrated gas business. The proposal received from the consortium is a non-binding, conditional, and indicative proposal.

As reported, the offer price represents a 54.9% premium on the last closing price of AU$5.81 apiece (as of 9 November 2022).

According to the ASX announcement, the price payable would reduce if Origin paid dividends before implementing the proposed scheme of arrangement. On the other hand, the offer price would rise by AU$0.03 per month if the implementation happened later than 15 May 2023.

This is not the first time that Origin has received a takeover proposal from the consortium. On 8 August 2022, the consortium offered to acquire the group for AU$7.95 cash per share. On 18 September 2022, a further proposal was made for AU$8.70–AU$8.90 per share.

Origin informed the market that the indicative proposal is subject to multiple conditions, like satisfactory completion of due diligence, approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC), and a unanimous board recommending that Origin shareholders vote in favour of the proposal.

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