Origin share price continues to fall after shareholders reject Brookfield takeover

Origin's takeover has officially collapsed. What happened?

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The Origin Energy Ltd (ASX: ORG) share price has returned from its trading halt and continued its slide.

In morning trade, the energy giant's shares are down 1% to $7.77.

This follows a 4% decline on Monday prior to its halt.

Why is the Origin share price falling?

Investors have been selling the company's shares this morning in response to news that its proposed takeover by Brookfield and EIG has failed.

Yesterday afternoon, Origin shareholders attended its delayed scheme meeting to vote on the $9.39 cash per share proposal.

In order to be approved, the proposal needed to receive 75% of votes in favour of it. However, this was always going to be a big ask given that its largest shareholder, AustralianSuper with a 17% stake, stated that it would be voting against the proposal.

In the end, only 68.92% of the votes cast by shareholders were in favour of the scheme resolution, which means it won't go ahead.

Although Origin's chair, Scott Perkins, was supportive of the proposal, he didn't sound too downcast by its failure. Perkins said:

Shareholders turned out in significant numbers to have their say on the future of the Origin. Throughout this process, the Board has focussed on ensuring all Origin shareholders recognise that their vote is important. While the scheme will not proceed, it was supported by many Origin shareholders. Importantly, this process has made clear the confidence all shareholders have in Origin's business, assets and people, and its strategic positioning for the energy transition.

Over at AustralianSuper, its team was very pleased with the news. The super fund has fought hard with both time and money to defeat this proposal and keep Origin available for Australian investors.

In response to the collapse of the takeover proposal, AustralianSuper's spokesperson said:

AustralianSuper believes Origin has a highly strategic portfolio of assets to participate in, and for members to benefit from, the energy transition. We have never wavered in our belief that the value and future value of Origin is better in the hands of members and other shareholders rather than a private equity consortium seeking to make a quick return based on the proposed scheme terms and we are pleased that this is the outcome.

The super fund also revealed that it would support Origin during its transition in the coming decades. It adds:

AustralianSuper is a long-term investor in the Australian economy and is open to providing capital to assist Origin as it prepares to transition over the coming decades, while delivering on our purpose to help members achieve their best financial position in retirement.

The Origin share price is flat over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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