No Brookfield/EIG would mean Origin needs a Plan B: Mac

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Macquarie’s analysts explain their potential Plan B to clients.

“We believe ORG will need to consider a Plan B if the arrangement is terminated,” the analysts told clients.

“In the past couple of years, the attraction of the structure was it allowed a de-gearing of ORG business as APLNG matured... With balance sheet repair completed the simple benefit of the ORG/APLNG structure diminishes.”The most obvious ones included various demerger structures or asset sales, and coming up with a plan that avoids excessive tax burden for the company and its shareholders.

Instead, the analysts reckon it would make more sense to follow Brookfield/EIG down the energy markets/APLNG demerger route.

 

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