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Date : 11/11/2022

Origin Energy (ASX: ORG) Share Price Surge through the roof after $18.4 billion Takeover Bid

Origin Energy Ltd (ASX: ORG) is an ASX-listed energy retailer. The company is engaged in energy discovery, production, electricity production and retailing. From electricity, natural gas, and LPG to solar, the company is an industry leader in providing energy to its consumers in Australia. If we classify its operating segments, they are production, generation, renewable energy and selling energy.

On Thursday morning, ASX Origin share price skyrocketed when the company announced they had received an $18.4 Billion takeover offer.

Origin Share Price ASX: FY22 Results

Origin Energy share price ASX jumped 35% to $7.89 on Thursday morning. The current market cap of the company is approximately $13.59 Billion.

Origin Energy Shares News & Analysis

  1. ORG announced revenue of $14.57 billion, increasing 20% YoY.
  2. Its operating expense was around $1.7 billion, more than 9.6% compared to the previous year.
  3. NPAT of the company was -$1.43 increasing 37.35% compared to 2021.
  4. The EPS of the company was $0.23, increasing 29% YoY.
  5. Its EBITDA was -$335 million in FY22.
  6. The company announced cash and cash equivalent of $1.23 billion in 2022, which increased 37.31% from 2021.

What’s the reason Origin share price ASX is being monitored by investors?

On Thursday, when Origin announced that it had received a takeover offer, the stock price went through the roof.

From what we can gather from the press release, Brookfield Asset Management and MidOcean Energy have made an indicative, conditional, and non-binding offer to acquire Origin via a plan of arrangement at a price of $9.00 cash per share. Future dividends declared and distributed will decrease this amount.

Valued at $18.4 billion in enterprise terms, this marks a significant premium of 54.9% over Origin’s stock price when the market closed on Wednesday. Furthermore, if it is finished before May 15th, 2023, it might be enhanced by 3 cents per share.

MidOcean Energy is an LNG business founded and operated by EIG, and Brookfield Asset Management is a Canadian investment firm. Brookfield would buy Origin’s Energy Markets division. At the same time, MidOcean would take over Origin’s Integrated Gas operations if the deal goes through.

This is not the first bid Origin has received!

According to the announcement, this is not the consortium’s first bid. Shareholders turned down proposals of $7.95 in August and $8.70 to $8.90 in September, both in cash.

This time around, Origin has approved the consortium’s request for due diligence and said that its objective is to propose unanimous shareholder approval of the proposal, provided the consortium makes a binding offer of $9.00 cash per share. Assuming no better suggestion comes forward, this might happen.

It would also be contingent on the parties entering into a legally binding scheme implementation agreement on conditions that are agreeable to Origin, as well as the conclusion of an independent expert that the proposal is both fair and reasonable, as well as in the best interests of Origin’s shareholders.

Origin Energy: CEO’s Remarks

According to Origin CEO Frank Calabria, the firm has improved its financial standing, narrowed its focus, and positioned itself to profit from the energy transition thanks to a series of strategic measures implemented over the last year. In addition, we have a hardworking, invested, and highly-skilled staff determined to serve our clients and the local areas in which they reside. Origin is well-positioned to steer the energy transition, seize opportunities, and generate returns for its investors.


Origin share price ASX have surged since the bid was made public. Now, ORG shares are on watch as the market awaits the company’s decision – whether to accept the bid or not.

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