Brookfield and the Washington DC-based EIG are making an A$18.4bn (€12bn) takeover bid for Australian energy company Origin Energy.
The bidders are proposing to acquire all of Origin Energy’s shares at A$9 a piece by way of a scheme of arrangement. Origin shares last closed at A$5.81.
The indicative proposal follows an earlier indicative proposal from the Brookfield-EIG consortium to acquire Origin for A$7.95 a share in August, which was subsequently increased to between A$8.70-A$8.90 a share, said Origin.
The Australian company said the indicative proposal from the consortium proposes that ultimately Brookfield would acquire Origin’s energy markets business and MidOcean Energy, and an LNG company formed and managed by EIG would acquire Origin’s integrated gas business.
Australian media is reporting that Brookfield is making the acquisition together with its funds, including its global energy transition fund.
Origin said there was no certainty that the indicative bid would progress to a binding proposal.
Origin chairman, Scott Perkins said while the due diligence process advanced, the company would remain focused on the successful execution of its strategy.
Origin CEO Frank Calabria said: “We believe Origin is in a strong position to lead the energy transition, capture opportunities and create value for shareholders.”
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