The Origin Energy Ltd (ASX: ORG) share price is down 1.17% in late morning trade on Tuesday.
At the time of writing, shares in the S&P/ASX 200 Index (ASX: XJO) energy provider are changing hands for $8.43 apiece.
That's 10.6% below the $9.43 per share implied total cash payment Origin shareholders will receive from the proposed acquisition of the company by a Brookfield-led consortium of investors and institutional energy investor EIG.
But judging by the sliding Origin Energy share price today, that approval may not eventuate.
Here's the latest news from the long-running acquisition battle.
Image source: Getty Images
Does $9.43 fairly value the Origin Energy share price?
If you own Origin Energy shares, you'll be able to vote on the proposed takeover this Thursday, 23 November.
In an update this morning, the board said it "continues to unanimously recommend that shareholders vote in favour of the scheme" at the upcoming meeting. And each member of the board said they'll vote in favour with any shares they hold or control.
The total cash payment, which values the Origin Energy share price at $9.43, is comprised of:
- AU$6.20 per Origin share held on the scheme record date
- US$1.86 per Origin share held on the scheme record date (current implied value of AU$2.84)
- A fully franked special dividend of 39 cents per Origin share
In supporting the deal, the board noted the offer price "is at the top end of the Independent Expert's valuation range of $8.45 to $9.48 per share as of 30 June 2023".
But not everyone agrees with that valuation.
Major shareholder AustralianSuper has been quite vocal that it believes the Origin Energy share price will climb significantly higher than the offer price over time.
Earlier this month, AustralianSuper reiterated its intention to vote against the acquisition, saying, "The offer from the consortium remains substantially below our estimate of Origin's long-term value."
AustralianSuper holds some 17% of Origin Energy shares.
Stay tuned.
