Macquarie has called for a “bump” in the bid price for Origin, further stoking the debate on the value of the $18.7 billion offer from Brookfield and EIG.
The bid price for Origin Energy from its North American suitors needs to be boosted towards $10 a share or higher to reflect the big lift in the takeover target’s business since it was agreed, Macquarie has told clients.
Perpetual’s Australian equities head Vince Pezzullo cited several factors behind the firm’s view, including the extension of the Eraring coal power station in NSW, the faster-than-expected growth at partly owned Octopus Energy in the United Kingdom, and the value of its stake in its highly cash-generating Australia Pacific LNG venture in Queensland, which could be used to fund investment in the energy transition.
The trimming of the price followed the intervention into the east coast energy market by the federal government, including ongoing controls over gas prices, but followed two increases behind the scenes before the approach was revealed to the market last November.A spokeswoman for Origin declined to comment on the Macquarie report, pointing to comments from the company’s chairman, Scott Perkins, in August.
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