The Origin Energy Ltd (ASX: ORG) share price has rocketed to its highest price since the onset of the COVID-19 pandemic amid the companyâs takeover talks.
The energy producer and retailer is currently the subject of a long-standing takeover bid from a consortium made up of Brookfield Asset Management and MidOcean Energy.
Right now, the Origin share price is $8.16, 0.99% higher than its previous close. That’s also its highest point since February 2020.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is plummeting 1.4% right now.
Meanwhile, the companyâs home sector â the S&P/ASX 200 Utilities Index (ASX: XUJ) â is down 0.29%, with stock in peers AGL Energy Limited (ASX: AGL) and APA Group (ASX: APA) falling 0.51% and 1.52% respectively.
Letâs take a closer look at whatâs been going on with the Origin share price lately.
Origin share price hits 3-year high on Monday
February has been a big month for the Origin share price, and an ultimately fruitful one at that.
That’s despite the stock plummeting 3% on the back of the energy giantâs half-year earnings, released on 16 February.
Within them, Origin revealed a $44 million underlying profit â down 83% year-on-year â and a 4% drop in earnings, coming in at around $1 billion. It also declared a 16.5 cent final dividend â up 32% year-on-year.
Fortunately, the stock gained back its earnings slump, and then some, when the companyâs suitor seemingly surprised the market by only lowering its takeover bid by 10 cents per share following an extended period of due diligence.
The offer now stands at $8.90 per share. That will be reduced by the value of any dividends paid to Origin investors before the deal closes, including the company’s recently declared final payout.
Origin still thinks the offer could deliver significant value to investors and, thus, will continue engaging with the consortium.
The Origin share price is currently 7% higher than it was at the start of 2023. It has also gained 43% since this time last year.
For comparison, the ASX 200 has lifted 4% year to date and 2% over the last 12 months.
The post Why did the Origin share price just hit a 3-year high? appeared first on The Motley Fool Australia.
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More reading
- Here are the 3 most heavily traded ASX 200 shares on Wednesday
- Why Origin, Santos, Service Stream, and WiseTech shares are racing higher
- Origin share price surges 14% despite lower takeover bid
- Origin Energy share price drops on underlying profit tumbling 83%
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brookfield Asset Management. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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