Skip to main content
Open this photo in gallery:

The logo of Australian energy company Origin, in Melbourne, Australia, on July 3, 2016.JASON REED/Reuters

Proxy advisory firm Institutional Shareholder Services (ISS) has recommended investors vote in favour of a Brookfield-led consortium’s $10.5 billion bid for Australia’s Origin Energy.

The offer has been rejected by pension fund AustralianSuper, which is Origin Energy’s largest shareholder.

Brookfield and EIG Partners has offered A$9.53 per share for Origin Energy. Shareholders are due to vote on the bid on Nov. 23. Seventy-five per cent of votes must be cast in favour of the offer for it to be approved.

“The transaction offers shareholders a cash exit at a premium in exchange for surrendering the payoff of a potential successful energy transition for the company,” the ISS report said.

AustralianSuper, which holds a 15.03% stake, has said it believes the consortium’s bid substantially “undervalues” Origin and will vote against the offer.

Brookfield will take ownership of Origin’s energy markets business if the vote is in favour of the bid, while EIG’s MidOcean Energy will gain a 27.5% stake in Australia Pacific LNG (APLNG).

If the shareholder vote fails, the Brookfield-led consortium said last week it has a backup plan for an off-market takeover that would require the minimum acceptance of 50.1% of the register and give it control of Origin’s board.

In that scenario, EIG will own Origin and sell the energy markets business to Brookfield, meaning remaining shareholders, including AustralianSuper, will own only APLNG.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 11/04/24 4:00pm EDT.

SymbolName% changeLast
Brookfield Corporation

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe