Yesterday we had a look at the reasons why AustralianSuper believes Origin Energy Ltd (ASX: ORG) shareholders should vote their shares against the proposed Brookfield/EIG takeover.
The super fund stated:
AustralianSuper will be voting against the revised proposal for Origin, made public by the company board today, if the board decides to put it to a vote. This latest low-ball offer strengthens AustralianSuper's view that the offer remains substantially below our estimate of Origin's long-term value.
That's the argument for voting against the proposed takeover, but what's the argument for voting in favour of it?
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Why you should vote your Origin shares in favour of the takeover
Brookfield believes that shareholders should vote in favour of the proposed takeover for a number of reasons. This includes protecting them from bearing the high and uncertain cost of funding the energy transition.
In addition, while AustralianSuper believes it is a "low-ball offer", Brookfield points out that it is at the high end of the independent expert's range. It is also worth remembering that this expert has done a deep dive into Origin's valuation and should theoretically know it best.
A Brookfield spokesperson told The Motley Fool Australia:
Brookfield remains committed to investing in the Australian energy transition through the acquisition of Origin Energy. The consortium has put another pathway to the Origin Board that continues to deliver value for investors, remains at the high end of the Independent Expert's range and protects shareholders from bearing the high and uncertain cost of funding the energy transition.
The spokesperson also notes that the energy markets business would be in safe hands with Brookfield. That's because it has the capital and experience to decarbonise Origin. The spokesperson adds:
Our alternative proposal creates a further opportunity for investors to realise compelling value for their Origin shares if the existing Scheme continues to be opposed by a handful of shareholders. Our plan is to invest up to A$30 billion to decarbonise Origin, contribute meaningfully to Australia's emissions-reductions targets and, in doing so, create jobs. Brookfield has access to capital, decades of renewables operating expertise and a global procurement presence.
