EIG Global Energy Partners

Feb 21, 2023

02/21/2023 | 09:38pm GMT Message : By David Winning SYDNEY--Origin Energy Ltd. said a consortium seeking to acquire the business has reduced the value of its indicative offer to 8.90 Australian dollars (US$6.10) a share, the latest twist in long-running takeover talks. The revised offer from the consortium comprising Brookfield and the LNG arm of private-equity firm EIG Global Energy Partners is lower than the A$9.00/share proposed late last year. Still, Origin said the latest proposal "has the potential to deliver significant value to shareholders, and accordingly, intends to continue to progress discussions with the Consortium, including the negotiation of a Scheme Implementation Deed, while assessing the execution considerations and risks associated with the revised proposal." Origin is a major shareholder in the Australia Pacific LNG plant in eastern Australia's Queensland state that supplies liquefied natural gas to Asia. The facility is operated by ConocoPhillips and has benefited from elevated prices of LNG after Russia's invasion of Ukraine led countries in Europe to scour the world for alternative sources to Russian supply. Origin also owns some power plants and is one of Australia's biggest retailers of electricity and gas to households and businesses. It has said it will stop exploring for oil and natural gas in landholdings that don't support the Australia Pacific LNG facility as it prepares to invest more in clean energy. If successful, the bid consortium plans to break Origin up. Brookfield would acquire Origin's Energy Markets business, which generates electricity for sale to customers along with some gas supply. MidOcean Energy, the EIG unit, would own Origin's Integrated Gas business, which includes its 27.5% interest in the Australia Pacific LNG project. Last year, Origin agreed to sell a 10% stake in the Australia Pacific LNG project to EIG for 2.12 billion Australian dollars, but the deal didn't proceed because ConocoPhillips exercised its pre-emption rights to acquire the interest instead. Write to David Winning at david.winning@wsj.com (END) Dow Jones Newswires