Pension fund AustralianSuper has increased its stake in Origin Energy Ltd (ASX:ORG) to 17% on Friday, with an intention to block a $10.5 billion buyout of Australia's largest energy retailer.
AustralianSuper is opposed to the takeover bid by the Brookfield-led consortium and its partner EIG, saying the offer is substantially below its estimate of Origin's long-term value.
The A$300 billion fund has reaffirmed its intention to reject the offer at the shareholder meeting on November 23.
"AustralianSuper’s position is unchanged on the upcoming vote ... as we believe the offer remains substantially below our estimate of Origin’s long-term value," a spokesperson for the fund said.
While AustralianSuper's stake is below the 25% threshold required to block a bid, generally low turnout from the retail shareholders who make up about a third of the listing gives the fund's stake extra weight.
“We are confident in the future prospects of Origin”
Origin chairman Scott Perkins told The Australian: “The cookie will crumble how the cookie crumbles.
“But we can say two things, we are confident in the future prospects of Origin and we believe it is in the best interest of shareholders to accept this offer on the table. The two things don’t necessarily go together.
“In the event the deal doesn’t get up, Origin will continue to have a bright future.”