- Australia’s Origin Energy Ltd OGFGY OGFGF bagged a takeover proposal worth around $10 billion from a consortium led by Brookfield Asset Management Inc. BAM.
- Origin said the consortium comprising Brookfield and the LNG arm of private-equity firm EIG had indicated it would make a cash offer at 9 Australian dollars a share, equivalent to $5.79.
- Origin said its board plans to recommend that shareholders vote in favor of a deal if the consortium makes a formal bid after completing due diligence and in the absence of a superior proposal.
- The consortium’s latest offer follows two earlier proposals.
- Origin is a significant shareholder in the Australia Pacific LNG plant in eastern Australia’s Queensland state, which supplies liquefied natural gas to Asia, the Wall Street Journal reports.
- The ConocoPhillips COP operated facility has benefited from elevated LNG prices after Russia’s invasion of Ukraine, as European countries scour the world for alternative sources to Russian supply.
- The report added that Origin also owns power plants and is one of Australia’s most considerable electricity and gas retailers to households and businesses.
- The proposal would ultimately result in Brookfield acquiring Origin’s Energy Markets business and MidOcean buying the Integrated Gas business.
- Last year, Origin agreed to sell a 10% stake in the Australia Pacific LNG project to EIG for 2.12 billion Australian dollars. Still, the deal failed as ConocoPhillips exercised its pre-emption rights to acquire the interest instead.
- Analysts expect LNG prices to remain high for some time as Europe spends billions of dollars to wean itself off Russian gas, despite China’s economic weakness and potential for a global recession.
- Price Action: OGFGY shares closed 2.14%higher at $3.70 on Wednesday.
- Photo Via Company
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
