The top shareholder in takeover target Origin Energy (ORG.AX) has increased its stake, calling the company's shares undervalued, in a move that could thwart an agreed offer from a consortium led by Canada's Brookfield (BAM.TO).
Australia's largest pension fund AustralianSuper said on Thursday it had raised its holding by 1% to just under 14%. Its vote would be critical to the deal going ahead, as it requires the support of 75% of votes cast.
"Origin’s current share price is substantially below our estimate of its long-term value and this is why we have increased our holding in the company," AustralianSuper said.
Origin in March agreed to a A$15.35 billion takeover offer from Brookfield, the largest buyout this year, valuing the company at A$8.91 a share.
The stock has been trading well below the offer price amid uncertainty over competition issues. Australia's anti-trust watchdog had planned to rule on the deal on Sept. 28 but last week pushed out its decision to Oct. 12.
Some investors and analysts have said the Brookfield-led offer undervalues the company given the possibility its major coal asset could stay open longer than planned and due to stronger performance in other assets.
AustralianSuper's additional stake is worth roughly A$150 million ($96 million) based on Reuters calculations and Origin's last closing price.
AustralianSuper did not immediately respond to Reuters' request for details on its intentions.
($1 = 1.5601 Australian dollars)
