Brookfield Renewable Announces Participation in Proposal for Origin’s Energy Markets Business
November 09 2022 - 5:13PM
Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC) alongside
MidOcean Energy (“MidOcean”), an LNG company formed and managed by
EIG, (collectively, the “Consortium”) announced today that
following the submission of a non-binding privatization proposal
(the “Proposal”), that we have entered into an exclusivity
agreement with Origin Energy Limited (“Origin”) to conduct due
diligence to submit a binding proposal.
Under the proposed transaction, Brookfield
Renewable and its institutional partners would acquire Origin’s
energy markets business, Australia’s largest integrated generation
and retail company, and MidOcean would acquire Origin’s Integrated
Gas division. The Consortium’s Proposal is at a price of A$9.00 per
share which values Origin at an enterprise value of A$18.4
billion.
Brookfield Renewable would pursue this
transaction through the Brookfield Global Transition Fund I, which
is the largest fund in the world focused on the energy transition,
alongside institutional partners.
The proposed privatization is consistent with
Brookfield Renewable’s strategy of investing in opportunities where
we can generate a meaningful contribution to the energy transition,
including the responsible decommissioning of existing thermal
assets and build out new clean generation for the benefit of all
stakeholders. Origin’s energy markets business is well positioned
to play a leading role in Australia’s energy transition. The
business has a high-quality energy platform with a strong in-place
management team that is focused on the transition. The capabilities
of Brookfield Renewable will be critical to ensure a responsible
and sustainable transition of the business, with a focus on
ensuring long-term grid reliability and power pricing affordability
for consumers.
Subject to completing due diligence and
providing a binding proposal which is accepted by Origin, the
Consortium will enter into a binding scheme implementation
agreement on mutually agreed terms with Origin. The Proposal is
subject to shareholder, regulatory and Origin board approvals.
Regulatory approvals include the Foreign Investment Review Board
(FIRB) and Australian Competition & Consumer Commission (ACCC)
merger clearance.
Brookfield Asia Pacific CEO Stewart Upson said:
“The global energy transition is a once-in-a-generation investment
opportunity. Through this transaction, we can leverage our access
to capital and clean energy capabilities to support the transition
from carbon-intensive generation sources to additional renewable
energy. This would represent a significant contribution towards
Australia’s net-zero transition objectives, all while generating
attractive risk-adjusted returns for our investors.”
The Consortium sent its Proposal to Origin on
November 10th by means of a letter.
Brookfield Renewable
Brookfield Renewable operates one of the world’s
largest publicly traded platforms for decarbonization technologies.
Our diversified portfolio consists of hydroelectric, wind, solar,
distributed energy and sustainable technology solutions across five
continents. Our installed capacity totals approximately 24,000
megawatts with over 100,000 megawatts and 8 million metric tons per
annum (“MMTPA”) of carbon capture and storage projects in our
development pipeline. Investors can access our portfolio either
through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX:
BEP.UN), a Bermuda-based limited partnership, or Brookfield
Renewable Corporation (NYSE, TSX: BEPC), a Canadian
corporation.
Brookfield Renewable is the flagship listed
renewable power company of Brookfield Asset Management, a leading
global alternative asset manager with over $750 billion of assets
under management.
Contact information: |
|
Media: |
Investors: |
Simon Maine |
Cara Silverman |
+44 7398 909 278 |
+1 416-649-8172 |
simon.maine@brookfield.com |
cara.silverman@brookfield.com |
|
|
Cautionary Statement Regarding
Forward-looking Statements
This news release does not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities law of such jurisdiction. No securities
regulatory authority has either approved or disapproved the
contents of this communication.
This news release contains forward-looking
statements and information within the meaning of applicable
securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Forward-looking
statements can be identified by the use of words such as “will”,
“believe”, “may”, “plan”, “expected”, “growth”, “approximately”,
“intend”, “potential”, “can” or the negative version of these words
or other variations or comparable of such words and phrases.
Forward-looking statements in this news release include statements
regarding the parties’ future expectations, beliefs, plans,
objectives, assumptions or future events or performance, including
with respect to the transaction, the Consortium’s transition and
business plans for AGL, the development of additional renewable
power and storage assets, the prospects and benefits of a
privatized company and any other forward-looking statements or
information in this news release. Although Brookfield Renewable
believes that such forward-looking statements and information are
based upon reasonable assumptions and expectations, no assurance is
given that such expectations will prove to have been correct. The
reader should not place undue reliance on forward-looking
statements and information as such statements and information
involve known and unknown risks, uncertainties and other factors,
including uncertainties as to whether the transaction is submitted
to a shareholder vote, whether shareholders approve the
transaction, whether the conditions to the transaction will be
satisfied, including securing applicable regulatory approvals, the
timing of the transaction, and the ability of the parties to
realize the expected benefits of a privatization, which may cause
the actual results, performance or achievements of Brookfield
Renewable to differ materially from anticipated future results,
performance or achievement expressed or implied by such
forward-looking statements and information. For further information
on these known and unknown risks and other applicable risks and
factors, please see the “Risk Factors” included in the Form 20-F of
Brookfield Renewable Partners L.P. and Brookfield Renewable
Corporation.
The foregoing list of important factors that may
affect future results is not exhaustive. Except as required by law,
Brookfield Renewable does not undertake any obligation to publicly
update or revise any forward-looking statements or information,
whether written or oral, whether as a result of new information,
future events or otherwise.
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