Shareholders in Australia’s largest power retailer Origin Energy have rejected a takeover bid by a consortium led by Brookfield Renewable Partners.
Origin’s shareholders voted 69% in favor of the transaction, which was short of the required 75% approval level.
Following the decision, Brookfield said it will now evaluate its next steps, if any, with respect to Origin, given the strong level of Origin shareholder support for its proposal.
It will also consider the potential impact to Origin of the Australian Government’s recently announced proposed expansion to its Capacity Investment Scheme and National Energy Transformation Partnership.
Brookfield Renewable chief executive Connor Teskey (pictured) said: “We are seeing plentiful opportunities to deploy capital at or above our target returns, as demand for clean power from corporations continues to accelerate and access to capital is becoming increasingly scarce for some market participants.
“We remain confident that we will deploy at least US$7 to US$8bn of equity capital into growth over the next five years, consistent with our targets.
“Specifically, our plan to accelerate the transition of Origin has generated significant interest from similar businesses around the world, who are seeking a capital and operating partner to enhance the value of their businesses by accelerating their transition.”
Brookfield’s proposal, made with EIG Partners, promised to build 14GW of renewable energy as part of a 10-year, AUS$20bn to AUS$30bn investment plan.
Origin’s board on Thursday rejected an alternative proposal lodged last week from the consortium to be considered if the current offer failed.
The power retailer will continue as an independent listed company and the board, which recommended the bid, would remain in place, Perkins told Reuters.