A clearer picture is emerging of the game plan for the suitors of Origin Energy, with the general view around the market now that the suitors will launch their takeover bid after the shareholder vote.
Brookfield and EIG’s advisers are believed to be mustering all the support they can get for shareholders to vote on their $16bn buyout proposal on November 23.
While 15 per cent shareholder AustralianSuper has signalled it opposes the transaction and will vote against it, if almost all of shares are voted, there’s a chance the deal will succeed.
For a buyout to gain approval, 75 per cent of shares voted for the transaction must be in favour.
If the vote does not pass, Brookfield and EIG will launch a takeover bid immediately after, and buy shares directly on the market.
The offer for the scheme of arrangement is $9.53 a share.
A takeover would be more costly from a funding and tax perspective, but the closer it is to the $9.53 per share offer price, the greater chance it has of success.
Brookfield and EIG are advised by Citi, JPMorgan and UBS.
Shares in Origin on Friday closed down 22c to $8.65.
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