AustralianSuper says Origin is ‘substantially’ undervalued and ‘an ideal platform to invest in the energy transition’.
Portfolio manager Jiren Zhou sees more attractive returns compared to utility-scale assets, and a way to avoid grid congestion headaches.
The bidders’ brown-to-green plan for Origin Energy eclipsed significant competition concerns in the Australian watchdog’s landmark decision.
Australia’s competition watchdog said Brookfield’s Global Transition Fund would have a ‘strong imperative and commercial incentive to lower emissions quickly’, outweighing vertical integration concerns.
Morrison & Co’s Steven Fitzgerald said the investment is consistent with its decarbonisation thematic and ‘fundamentally’ has the characteristics of infrastructure.
The sale is being run in steps, with the first round of about $500m recently closed and pricing coming in at more than 90% of NAV.
The ACCC’s decision to oppose Transurban’s EastLink bid shows it has become serious about toll road competition.
Selling assets at a premium should help placate investors worried about HICL’s discounted share price, InfraRed’s Edward Hunt tells us.
The manager will invest in Chow Energy to help develop its 1GW solar pipeline, as it eyes future investments in the country.
The decision is the first time the ACCC has blocked a Transurban toll road deal and opens the door for other investors to acquire a majority stake in EastLink.