Genex shares surge after receiving takeover offer from J-Power
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The news: Renewable energy developer Genex has received an improved indicative non-binding takeover bid from Japanese partner J-Power after the first offer was knocked back by its board.
The numbers: The bid, would see J-Power acquire the Genex shares that it does not already own by way of a members’ scheme of arrangement for 27.5 cents in cash per share, valuing it at $381 million.
The proposal also contains an alternative structure, under which J-Power will potentially also, concurrently with the potential scheme, make an off-market takeover bid for all Genex shares at 27 cents cash per share, valuing it at $374 million.
Genex shares surged 35.13% to $0.25 in early trading on the ASX, following the takeover announcement.
The context: Genex revealed that an independent committee of its board of directors determined that J-Power's previous offer of 23.5 cents to 24 cents per share, tabled last month, undervalued the company.
Following the revised bid, the committee said it was in the best interests of Genex shareholders to progress the indicative proposal to allow J-Power to undertake due diligence on Genex to assist it to provide a binding proposal.
J-Power is a 50% joint development partner of Genex in its Kidston Stage 3 Wind and Bulli Creek solar and battery projects, and holds an existing 7.72% stake in Genex.
What they said: A J-Power spokesperson said: “J-Power confirms that it submitted a compelling proposal to acquire Genex Power".
“J-Power has had a strong and longstanding partnership with Genex, including as a joint owner and developer of Genex’s key growth assets, Kidston Wind Project and Bulli Creek Clean Energy Project," they said.
“We look forward to engaging constructively with the Genex Board to finalise a proposal which can be put to shareholders.
“Our proposal will accelerate investment in the future of Genex and renewables in Australia, with J-Power bringing the capital and operational expertise to fund and operationalise new developments.”
The source: ASX announcement
