Brookfield and EIG Partners have raised their acquisition offer for Origin Energy to $9.53 per share, an 8% increase from their previous offer which pushes the company's valuation nearer to $20 billion, The Australian Financial Review reported.
Shares in Origin Energy fell by 2.2% as the market absorbed the new terms, which were announced overnight.
The latest bid comes after AustralianSuper, which owns over 13% of Origin, dismissed the North Americans' initial proposal.
Several other institutional shareholders have also demanded that the offer be improved, with some suggesting a price exceeding $10 a share would persuade them to accept.
However, the revised price falls slightly above the upper range of independent expert Grant Samuel's valuation, pegged between $8.45 and $9.48 per share.
Takeover twist
In raising their offer, Brookfield and Washington-based EIG signalled that if the current scheme is rejected, they may return with an off-market takeover bid at a lower approval threshold, which will reduce AustralianSuper's influence on the outcome.
Brookfield chief executive officer for the Asia-Pacific region Stewart Upson said: “We have worked hard to deliver the best possible offer reflecting all the current circumstances of the company.
"Our revised offer price is our best and final offer as to price under the scheme and is a compelling opportunity for shareholders."
Acceptable revision
Origin chairman Scott Perkins noted that the new offer injects an extra $1.2 billion into the cash offer previously accepted by the board.
“The revised consideration is now above the top end of the independent expert’s (June 30, 2023) valuation range, allowing all shareholders to receive a certain cash value for their Origin shares,” Perkins said.
“We encourage all shareholders to vote in favour of the scheme.”
AustralianSuper has yet to issue a response but Allan Gray, a longstanding Origin institutional shareholder has voiced its support, stating that the new bid "strikes a fair balance".
The acquisition requires 75% acceptance and is slated for a final shareholder vote on November 23, with the implementation postponed to January 31.