Genex Power Ltd (ASX:GNX) disclosed on Monday that it has attracted an AUD-381-million (USD 247.6m/EUR 229.0m) takeover proposal from Japanese utility Electric Power Development Co Ltd (TYO:9513), or J-Power, with the news sending shares in the Australian renewables and energy storage firm soaring on Monday.
Shares in the target company, which has a portfolio of over AUD 1 billion of power generation and storage projects across the country, closed 32.4% higher at AUD 0.245 in Sydney on Monday.
J-Power, which already has a 7.72% shareholding, has placed “a non-binding, indicative and conditional proposal” to acquire the ordinary shares in Genex not already owned at AUD 0.275 apiece in cash. The proposal represents a 65% premium to Genex’ six-month volume-weighted average price (VWAP) as of March 1 and implies a total equity valuation for Genex of just above AUD 380.9 million, based on the number of shares outstanding.
If the proposed transaction is voted down by Genex shareholders, the suitor intends to launch an off-market takeover bid at AUD 0.270 per share, seeking to amass a majority stake of 50.1%.
After considering the offer, Genex has agreed to a confirmatory due diligence so that the parties could potentially advance toward a definitive agreement.
Genex’ flagship asset is the Queensland-based Kidston Clean Energy Hub, which comprises an operational 50-MW solar park and a 250-MW pumped storage hydro project with the potential for further multi-stage wind and solar projects. It also owns the 50-MW Jemalong solar farm in New South Wales.
J-Power is a 50% joint development partner of Genex for its Kidston Stage 3 Wind and Bulli Creek Solar and Battery projects.
The Monday disclosure comes after Genex in February turned down as under-priced another J-Power acquisition proposal that valued it at AUD 0.240.
Back in 2022, a tie-up of investors including shareholder Skip Capital sought to acquire the Australian firm but the attempt failed eventually.
(AUD 1 = USD 0.650/EUR 0.601)
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