The energy giant behind the Eraring Power Station in Lake Macquarie, is in negotiations on a potential take over bid.
Origin confirmed yesterday they had received a $18 billion takeover bid from Canadian asset manager Brookfield and US-based energy investor EIG at $9 per share.
Brookfield wants to turn Origin into Australia’s biggest clean energy supplier and is willing to put a further $20 billion into the company in order to achieve that.
The energy company has entered into a confidentiality and exclusivity agreement with the companies and intend to unanimously recommend that shareholders vote in favour of the proposal.
In a statement to the ASX, Origin Chairman Scott Perkins said it’s good news.
“This proposal confirms that Origin, its operations and management team represent a highly strategic platform, well-placed to benefit from the energy transition.
“Our confidence in Origin’s prospects underscored our engagement with the Consortium [Brookfield and EIG] and delivered a material increase in their initial offer.”
CEO Frank Calabria said the company is in a strong position to lead the energy transition.
“Over the past year, Origin has executed a number of important strategic initiatives that have strengthened the balance sheet, sharpened our strategic focus and positioned the company to prosper from the energy transition.
“At the same time, we have a dedicated, engaged and highly-skilled workforce who are committed to delivering good outcomes for our customers and communities.”
Origin announced earlier this year they would shut Eraring Power Station earlier than first expected, in 2025.