Investing
Proxy advisor CGI Glass Lewis backs Brookfield bid for Origin Energy
© Reuters. Miniatures of windmill, solar panel and electric pole are seen in front of Brookfield Renewable logo in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
By Scott Murdoch and Lewis Jackson
SYDNEY (Reuters) – Proxy advisor CGI Glass Lewis on Thursday recommended Origin Energy shareholders vote in favour of a $10.5 billion bid from a consortium led by Canada’s Brookfield, despite opposition from the target’s largest shareholder.
Brookfield and EIG Partners last week offered a “best and final” A$9.53 per share for Origin after raising a previous bid.
Australia’s largest pension fund AustralianSuper opposes the offer and intends to use its 15% stake to vote against the deal at a Nov. 23 shareholder meeting.
Depending on the turnout, the opposition risks sinking a deal that requires 75% of shareholder votes cast to pass.
CGI Glass Lewis on Thursday backed the deal and said there was enough evidence to support an “attractive” transaction that would allow investors to cash out at a premium.
The support, which follows the deal’s backing by fellow proxy advisory firm Institutional Shareholder Services (ISS) on Tuesday, is a boost for Origin and the consortium as they campaign to win over investors large and small ahead of the meeting later this month.
Origin will this weekend begin a print and online marketing push to win over shareholders, according to a source with knowledge of the matter.
CGI Glass Lewis acknowledged AustralianSuper’s concern the deal potentially undervalued Origin’s ability to profit from the country’s transition to renewable energy, but said it was fair given the uncertainty around how the changes would play out.
“Whether or not one agrees with that point of view comes down to individual perceptions of the market and levels of risk tolerance,” the proxy advisor said. “(The offer) ultimately offers investors certainty of value at a level that is within a reasonable range.”
Should the deal fail, the Brookfield-led consortium said last week it had a back-up plan for an off-market takeover that would require the minimum acceptance of 50.1% of the register and give it control of Origin’s board.
In that scenario, EIG would own Origin and sell the energy markets business to Brookfield, meaning remaining shareholders, including AustralianSuper, will own only its 27.5% stake in Australia Pacific LNG.
Read the full article here
-
Passive Income7 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles6 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
How Your Body Language Can Help Win a Disagreement
-
Investing7 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Investing5 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles7 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles6 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Side Hustles5 days ago
Mark Zuckerberg Is Now Second Richest Person in the World