ASX:ORG
Origin Energy Ltd
Investment Summary
The fund managers believe that Origin Energy Ltd. presents significant investment potential, particularly highlighted by its recent takeover offer of $9.00 per share from Brookfield Asset Management and MidOcean Energy, which translates to a 55% premium over the share price prior to the announcement. They noted that this offer recognizes the upside potential that they had identified in the company. However, the managers opted to exit their position due to lingering risks associated with the deal's completion, such as due diligence and regulatory approvals. Despite the promising offer, their decision reflects a cautious stance amidst the uncertainties surrounding the takeover process.
Commentary From The Managers
L1 Capital
31 Dec 2022
$7.59
- Origin Energy shares increased by 49% after a takeover offer of $9.00 per share.
- The offer from Brookfield Asset Management and MidOcean Energy provides a 55% premium to the share price prior to the announcement.
- This offer follows two previous rejected offers at $7.95 and $8.70-$8.90 per share.
- The takeover offer reflects the potential that L1 Capital identified in the company.
- L1 Capital decided to exit the position due to potential risks including due diligence and regulatory approvals.
L1 Capital
30 Nov 2022
$7.86
- Origin Energy shares rallied after a takeover offer of $9.00 per share.
- The offer represents a 55% premium to the share price prior to the announcement.
- This proposal follows two prior rejected offers of $7.95 and $8.70-$8.90 per share.
- The takeover offer recognises the upside potential identified by L1 Capital.
- L1 Capital decided to exit the position due to remaining risks such as due diligence and regulatory approvals.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.