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Leading Investor Declines Brookfield's A$19 Billion Bid

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Top Investor Rejects Brookfield's A$19.4 Billion Bid for Origin Energy

AustralianSuper, the largest investor in Origin Energy Ltd., has announced its rejection of an improved A$19.4 billion ($12.5 billion) takeover offer from a consortium led by Brookfield Asset Management Inc. The revised proposal, which includes EIG Global Energy Partners, was deemed too low by AustralianSuper, which holds approximately 13.67% of the utility's shares. The pension fund believes that the offer significantly undervalues Origin's long-term worth and highlights the strategic value of the company's asset portfolio in the energy transition. Despite the rejection, Origin intends to proceed with a scheduled vote on the deal. Brookfield and EIG's revised proposal represents a final offer and is above the valuation set out in an independent expert's report. The consortium plans to invest up to A$30 billion in Origin over the next decade to accelerate the company's transition to cleaner energy sources.

Implications of AustralianSuper's Rejection for New Businesses

AustralianSuper's rejection of the improved takeover offer for Origin Energy from Brookfield Asset Management's consortium has significant implications for new businesses, particularly those in the energy sector.

Valuation and Long-term Worth

The pension fund's assertion that the offer undervalues Origin's long-term worth underscores the importance of accurately assessing a company's value, especially in a rapidly changing industry like energy. This serves as a reminder for new businesses to consider long-term potential and strategic value when evaluating investment offers.
Strategic Value in Energy Transition
AustralianSuper's emphasis on Origin's strategic value in the energy transition highlights the growing importance of sustainable and renewable energy sources. This suggests that new businesses in the energy sector should focus on developing and showcasing their capabilities in these areas to attract investment.

Investment in Cleaner Energy Sources

The consortium's plan to invest up to A$30 billion in Origin to accelerate its transition to cleaner energy sources indicates the increasing demand for sustainable solutions. This presents significant opportunities for new businesses that can offer innovative and effective approaches to renewable energy. In conclusion, AustralianSuper's decision offers valuable insights for new businesses on the importance of accurate valuation, the strategic value of sustainable practices, and the potential for investment in cleaner energy sources.
Story First Published at: https://financialpost.com/pmn/business-pmn/top-origin-investor-to-snub-brookfields-a19-billion-bid
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