It is anticipated that on Monday, shareholders will vote against Brookfield Asset Management Ltd.’s $12.8 billion takeover offer for Origin Energy Ltd. AustralianSuper, which owns around 17% of Origin, is the largest investor and has opposed Brookfield and EIG Global Energy Partners’ year-long acquisition of the utility. The pension fund contends that taking the company private would miss a significant chance for local investors to get exposure to the energy revolution and feels the offer is too low.
Australia’s efforts to speed up the addition of solar and wind farms as outdated coal-fired plants are shuttered may be slowed if the transaction is rejected. Brookfield has pledged to more than triple the utility’s projected capacity for producing sustainable energy and to invest up to $30 billion over ten years in Origin. But Origin announced last week that it would not back a different deal that Brookfield had proposed, which would have required paying $12.3 billion for the target’s energy production and retailing operations.
There are currently no intentions by Brookfield, which was not successful in its earlier attempt to acquire competitor utility AGL Energy Ltd., to submit a fresh offer. Rather than focusing on coal power replacement, the fund will investigate the effects of new policies from the Australian government that aim to speed up the installation of sustainable energy-producing capacity.