AustralianSuper has made clear its opposition to Brookfield and EIG Partner’s nearly $20 billion bid for Origin Energy, Australia's largest electricity and gas retailer. The superannuation fund has reportedly increased its stake in Origin to 17.5%, positioning itself as a potential barrier to the proposed takeover.
Brookfield and EIG's offer of approximately $9.43 per share for Origin is under scrutiny, as it requires approval from 75% of Origin’s shareholders.
AustralianSuper's significant shareholding complicates this, as the fund has voiced its objection to the bid. The outcome hinges on the upcoming shareholder vote on November 23, with AustralianSuper now unable to increase its stake further due to time constraints.
This move comes amidst broader concerns about the acceleration of Australia's transition away from fossil fuels, a process in which Brookfield and EIG's bid is believed to play a crucial role. The bidders have actively campaigned to win shareholder support, countering the opposition from AustralianSuper.
Despite an increased offer by Brookfield and EIG, AustralianSuper remains resistant. The revised bid, now around $20 billion, was boosted in response to AustralianSuper's refusal to accept the original offer.
The situation remains fluid, with the potential for an off-market bid by the consortium requiring only 51% support, though such a path faces its own challenges, including financial and regulatory hurdles.
A pivotal deal
The outcome of this deal is pivotal not only for the companies involved but also for Australia’s energy sector.
Brookfield and EIG's commitment to invest heavily in renewable energy aligns with the nation's goals to significantly increase renewable energy generation, however AustralianSuper disputes that funding is the primary obstacle to the energy transition.
As the vote nears, the industry awaits to see whether AustralianSuper’s stance will alter the course of this significant energy deal and, consequently, Australia's energy future.