The energy supplier’s shares jumped 6.6 per cent as it said no material issues had arisen during due diligence, despite the government’s gas intervention.
Origin Energy said takeover bidders Brookfield and EIG Group have found no material adverse issues during due diligence, as hedge funds circle the stock, drawn by the big gap between the proposed $9-a-share takeover price and the value of the shares on the stockmarket.
There had been market speculation that the federal government’s gas market intervention could be used as a reason for the bidders to walk away. It said the pair had confirmed they were on course to complete due diligence for the cash takeover proposalAnalysts have been assessing the impact on energy suppliers on the Albanese government’s move to impose price caps on gas for 2023 on the east coast, then to make gas sales permanently subject to “reasonable” pricing provisions.
Still, the government’s intervention on gas prices is tougher and longer than the industry was anticipating, and is expected to have caused the bidders to re-examine the impact on Origin’s business. He also suggested that the ACCC may raise concerns, given Brookfield’s ownership of Victorian gas and electricity infrastructure assets through AusNet, alongside Origin’s energy retailing portfolio, the Mortlake power station and the Intellihub metering business.
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