AGL shares left at the alter amid Origin's new proposal

AGL looks to be the bridesmaid to Origin's bride.

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Key points
  • The chance of reconciliation – or a future acquisition agreement– between AGL and former suitor Brookfield appears to have gone down the drain today after Origin announced it's ready to accept the firm's takeover proposal
  • Brookfield was part of a consortium bidding for control of AGL earlier this year, apparently going so far as to snap up a sizeable stake in the energy giant
  • Today, however, Origin revealed it would likely recommend a binding $9 bid proposed by Brookfield and MidOcean Energy

The AGL Energy Limited (ASX: AGL) share price is sliding on Thursday as its former suitor looks set to ride off into the sunset with a rival S&P/ASX 200 Index (ASX: XJO) company.

Wedding bells are ringing for Origin Energy Ltd (ASX: ORG) after the energy giant revealed it would likely recommend a $9 per share bid proposed by Brookfield Asset Management and MidOcean Energy.

That's the same Brookfield that was on AGL's doorstep earlier this year. Indeed, it appeared to snap up a 2.5% stake in the company in late June.

But the match apparently wasn't to be. The AGL share price is sliding 0.46% right now to trade at $7.605.

Meanwhile, that of Origin has rocketed 34.6% to $7.82. It's helping to drive the S&P/ASX 200 Utilities Index (ASX: XUJ) 13.2% higher while the ASX 200 is 0.23% in the red.

Let's take a closer look at the ASX 200 bride and the potentially jilted bridesmaid on Thursday.

A young woman looks at something on her laptop, wondering what will come next.

Image source: Getty Images

AGL share price slumps amid Origin takeover proposal

The AGL share price is falling as its former suitor looks to have moved on with another Aussie energy giant.

Brookfield was previously part of a consortium, including Atlassian Corp (NASDAQ: TEAM) co-founder and co-CEO Mike Cannon-Brookes' Grok Ventures, bidding for AGL.

The pair offered as much as $8.25 per share for the ASX 200 energy favourite in March. Though, all offers put to the AGL board were promptly rejected.

Interestingly, the company said the offer undervalued it relative to the value expected to be born from its ultimately scrapped demerger.

It's hard to say whether any market watchers were expecting Brookfield to return to AGL in the future. If so, it could go some way to explaining why the AGL share price is underperforming today.

Today's proposal values Origin at $18.4 billion. If it makes it down the aisle, Brookfield will walk away with Origin's energy markets business. Meanwhile, MidOcean would take on its integrated gas business.

Meanwhile, all eyes will likely be on the AGL share price on Tuesday amid what's expected to be a turbulent annual general meeting (AGM).

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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