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The Origin Energy Ltd (ASX: ORG) share price is experiencing a slight dip of 0.81%, currently at $9.23 per share on Wednesday. Despite being 3.6% higher than the implied takeover price of $8.91 agreed upon in March, uncertainties surrounding the deal have been a focal point at the annual general meeting.
Chair Scott Perkins reassured shareholders that the board had considered the company's improved outlook when accepting the revised takeover bid from Brookfield and MidOcean in March. Perkins emphasized that the decision was made with visibility into various factors shaping Origin's business outlook, taking into account the Independent Expert's assessment of the Scheme's best interests for shareholders.
The implied takeover price of $8.91, subject to currency fluctuations, was discussed, and shareholders are expected to receive an updated implied price ahead of the scheme meeting. Perkins noted that the current Origin Energy share price incorporates the takeover deal, which has contributed to a 22% rise in Origin Energy shares year-to-date.
However, Perkins cautioned that if the deal does not proceed, the share price may experience a decline. He stated, "Shareholders should note that the trading price of Origin shares is impacted by the proposed Scheme and that the share price may not necessarily trade at these levels in the absence of the proposed scheme. If the scheme does not proceed, the share price may fall."
The parties involved are navigating regulatory processes, with the Australian Competition and Consumer Commission (ACCC) formally approving the deal last week. A hearing at the Supreme Court of NSW is scheduled for this afternoon, seeking approval to convene a scheme meeting and issue the scheme booklet. Origin anticipates lodging the booklet and notice with the ASX within 24 hours if court approval is granted.
Macquarie, a top broker, recently suggested that the fair market value for Origin Energy shares is now estimated between $9.49 and $10.08 per share. Despite uncertainties, Australia's largest superannuation fund, AustralianSuper, increased its stake in Origin from 12.66% to 13.68%, citing the current price as "substantially below our estimate of its long-term value." The ongoing activities of AustralianSuper reveal strategic share purchases, acquiring millions of Origin shares at prices not exceeding $8.69 per share in September.
