Macquarie emerges victorious
Origin's advisors do well in the aftermath of the ConocoPhillips deal while BG's aren't so lucky.
Origin Energy has estimated that the transaction costs associated with fending off BG Group's $13.8 billion hostile offer, seeking bids for its coal seam gas assets and signing the $9.6 billion deal with ConocoPhillips, will amount to no more than $110 million.
The size of those fees suggests a significant return for Macquarie Group, which has been Origin's principal advisor in the BG defence, and on the so-called CSG Monetisation Process.
A team led by Robin Bishop and Rowan Ross led the Macquarie team. Legal firm Clayton Utz can also expect a multi-million payment, with that team led by Graham Taylor and Rod Halstead which included a dozen senior lawyers. Other costs would include PR advisors, accounting advice, documentation and the $2.75 million fee for the independent expert's report prepared by Grant Samuel, where the $110 million estimate – previously a closely guarded figure – was revealed.
BG had estimated its own transaction costs for the Origin bid at between $50 million and $90 million, including any success fees. Because the bid is being allowed to lapse, it's safe to assume the costs – covering the services of principal advisors Goldman Sachs JBWere and Gresham Partners, supporting advisors Morgan Stanley and Deutsche Bank, and legal firms Mallesons Stephen Jaques, Simpson Grierson, and Allen & Overy – will come in at the lower end of that scale.
The Grant Samuel report reveals that Origin received 22 expressions of interest from a wide range of "credible” international and domestic energy companies in early July 2008. Origin then reduced this to a short list of six, who were invited to conduct detailed due diligence and submit final offers and five final offers were received.
The deal with ConocoPhillips allows for Origin to receive up to $9.6 billion, depending on the number of LNG trains that the joint venture finally commits to.
Grant Samuel has ascribed a valuation to Origin of its CSG Assets at $16.7 billion to $17.4 billion, its conventional oil and gas assets at $2.4 billion to $2.8 billion, and its downstream energy businesses of $8.5 billion to $9.2 billion. After adding in the value of its majority stake in Contact Energy, and subtracting debt, and head office and other costs, Grant Samuel concludes with a value for Origin at $25.4 to $27.4 billion, or $28.55-30.71 per share.
The size of those fees suggests a significant return for Macquarie Group, which has been Origin's principal advisor in the BG defence, and on the so-called CSG Monetisation Process.
A team led by Robin Bishop and Rowan Ross led the Macquarie team. Legal firm Clayton Utz can also expect a multi-million payment, with that team led by Graham Taylor and Rod Halstead which included a dozen senior lawyers. Other costs would include PR advisors, accounting advice, documentation and the $2.75 million fee for the independent expert's report prepared by Grant Samuel, where the $110 million estimate – previously a closely guarded figure – was revealed.
BG had estimated its own transaction costs for the Origin bid at between $50 million and $90 million, including any success fees. Because the bid is being allowed to lapse, it's safe to assume the costs – covering the services of principal advisors Goldman Sachs JBWere and Gresham Partners, supporting advisors Morgan Stanley and Deutsche Bank, and legal firms Mallesons Stephen Jaques, Simpson Grierson, and Allen & Overy – will come in at the lower end of that scale.
The Grant Samuel report reveals that Origin received 22 expressions of interest from a wide range of "credible” international and domestic energy companies in early July 2008. Origin then reduced this to a short list of six, who were invited to conduct detailed due diligence and submit final offers and five final offers were received.
The deal with ConocoPhillips allows for Origin to receive up to $9.6 billion, depending on the number of LNG trains that the joint venture finally commits to.
Grant Samuel has ascribed a valuation to Origin of its CSG Assets at $16.7 billion to $17.4 billion, its conventional oil and gas assets at $2.4 billion to $2.8 billion, and its downstream energy businesses of $8.5 billion to $9.2 billion. After adding in the value of its majority stake in Contact Energy, and subtracting debt, and head office and other costs, Grant Samuel concludes with a value for Origin at $25.4 to $27.4 billion, or $28.55-30.71 per share.
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