What now for Origin shares after takeover termination?

What's going to happen next?

| More on:
Man wearing green shirt and pink watch flexes his muscle. representing the strength in ASX shares at the moment

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After more than a year of excitement surrounding Origin Energy Ltd (ASX: ORG), shareholders rejected a proposed takeover at the rescheduled meeting earlier this week.

Origin told the market in an ASX announcement today that the takeover process had officially ended.

Termination of scheme implementation deed

This followed a meeting held earlier this week on the proposed acquisition of Origin involving Brookfield and EIG through a scheme of arrangement.

On 4 December 2023, the offer was not approved by the required majority of shareholders at the meeting, which was needed for the takeover to proceed.

Therefore, Origin advised that it has today terminated the scheme implementation deed.

What now for Origin shares?

It seems unlikely that Brookfield will return with another approach considering AustralianSuper has such a large presence on the share register.

When the vote was rejected, the Origin chair Scott Perkins said:

We look forward to the continuing support of our shareholders as we focus on delivering on our strategic priorities, accelerating investment in cleaner energy and storage and pursuing our ambition to lead the energy transition.

Origin now has to get on with the job of investing billions of dollars into decarbonising its energy generation.

Interestingly, AustralianSuper said it was 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".

AustralianSuper will also reportedly back the current Origin board, while some shareholders said there should be a demerger and bigger dividends.

The company has said its long-term ambition is to achieve net zero scope 1, 2 and 3 emissions by 2050, with a 40% reduction by 2030.

It also wants to grow its renewables and storage capacity to 4GW by 2030 while reducing emissions from existing operations, including the planned accelerated Eraring closure.  

Origin also expects hydrogen to play "an important role in the future global energy mix, particularly in hard-to-abate sectors such as heavy industry and some forms of transport". It's exploring both domestic and export market opportunities for hydrogen and ammonia.

It will take a lot of capital to see these plans through.

Origin share price snapshot

The Origin share price is up more than 1% over the past year, despite the takeover collapsing.

Motley Fool contributor Tristan Harrison 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.

More on Share Market News

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Share Market News

If I invest $10,000 in Qantas shares, how much passive income will I receive in 2024?

Here's what analysts are predicting from the airline operator.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards according to analysts.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Value Investing

Looking for ASX value shares? Here's 1 I'd buy and 1 I'd avoid!

It's not an easy exercise to identify which stocks are undervalued and which ones are simply terrible. Here's an example…

Read more »

A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.

Will I be buying Zip shares now the company has turned a profit?

Is now the right time to buy this BNPL stock -- or not?

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape

1 ASX dividend stock down 55% to buy right now

Here's why I think this beaten-up stock could be an opportunity.

Read more »

Three analysts look at tech options on a wall screen
Share Market News

Here's how the ASX 200 market sectors stacked up this week

ASX tech shares are on fire, leading the 11 market sectors for a third consecutive week.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 clocked a few new all-time highs this Friday.

Read more »

A young couple stands next to a real estate agent in an empty apartment they are inspecting
Share Market News

How ASX shares vs. property performed in February

We reveal the property price growth for each city and regional market and the top 5 risers of the ASX…

Read more »