A consortium led by Canadian infrastructure investor Brookfield Asset Management Inc. (TSX:BAM.A) has made a non-binding takeover bid for Australia's Origin Energy Ltd. (ASX:ORG) that values the electricity and natural gas company at AUD 18.4 billion (USD 11.81 billion /EUR 11.77 billion). The Aussie utility said that this is the third indicative proposal made in the past few months by Brookfield and its bidding partner MidOcean Energy, LLC, a liquefied natural gas (LNG) company formed and managed by EIG, but now Origin has decided to grant the suitors exclusivity in order to conduct due diligence. The process is expected to be completed within eight weeks and if no superior bid emerges from a third-party, Origin would be willing to recommend that its shareholders accept a binding offer from Brookfield and MidOcean, it said.

The consortium wants to acquire all of the target's issued share capital through a scheme of arrangement for AUD 9 per share in cash. The duo had made initial offers of AUD 7.95 per share in August and of AUD 8.70-8.90 per share in September, according to Origin. The latest offer represents a 54.9% premium to the closing price of Origin's stock on November 9. As part of the latest proposal, Brookfield would acquire Origin's energy markets business, which the bidder says is "well positioned to play a leading role in Australia's energy transition," while MidOcean will take control of its integrated gas business.

According to media reports, the Canadian investor has plans to pour AUD 20 billion into the business, which includes retail and energy supply operations, to back its transition to renewables by 2030. Origin is involved in power generation and sale from conventional and renewable power sources. The company's renewables portfolio consists of wind, hydro and solar assets, among which is the 450-MW Yarrabee solar farm in New South Wales.

Any potential deal will be subject to shareholder and board clearance and will also require approval from the Foreign Investment Review Board (FIRB) and the Australian Competition & Consumer Commission (ACCC).