The Origin Energy Ltd (ASX: ORG) share price has returned from a short trading halt and stormed higher.
In afternoon trade, the energy giant's shares are up 3.5% to $8.72.
What's going on with the Origin share price?
Investors have been buying the company's shares after it released an update on its proposed takeover.
Origin has confirmed that last night the Brookfield-led consortium of investors and EIG tabled a non-binding and indicative proposal to amend their current takeover offer.
In addition, the company has postponed its scheme meeting that was scheduled for today until 4 December.
Both developments appear to be in response to early votes for the scheme meeting indicating that "it is unlikely that the Scheme would have achieved the required 75 per cent approval by shareholders."
New takeover offer
According to the release, the revised proposal is as follows:
- Under the existing scheme, the addition of a potential opportunity for institutional shareholders to re-invest into the Brookfield owned Energy Markets business after completion of the Scheme. All other terms remain the same, including a total cash payment of approximately $9.431 per share.
- In the event that the scheme is not approved by the requisite majorities, an alternative transaction option of $9.08 per Origin share. This consists of a sale of Energy Markets (including Origin's share of Octopus Energy) to Brookfield for $12.3 billion, conditional on approval by Origin shareholders through an ordinary resolution, with a subsequent off market takeover offer by EIG for Origin, subject to a 50.1 per cent minimum acceptance condition.
What now?
Based on the Origin share price performance this afternoon, it seems that the market believes these revisions have increased the odds of a deal getting over the line.
After all, it would allow institutional investors like AustralianSuper, which fiercely opposes the proposal, to continue owning a slice of the company. Though, it is worth noting that the super fund has not yet responded to the news.
Whatever happens, the next couple of weeks are likely to be very eventful for shareholders.
