J-Power's AUD 381m Bid Sends Genex Shares Soaring
- Genex Power Ltd receives AUD 381 million takeover proposal from J-Power, causing shares to surge by 32.4% in Sydney. J-Power offers a 65% premium for remaining shares.
Australian renewables firm Genex Power Ltd has received a takeover proposal worth AUD 381 million (USD 247.6 million) from Japanese utility J-Power, causing its shares to surge by 32.4% in Sydney. J-Power, which already holds a 7.72% stake in Genex, has offered to acquire the remaining shares at AUD 0.275 each in cash, representing a 65% premium to Genex's six-month average price.
If the proposed transaction is rejected by Genex shareholders, J-Power plans to launch an off-market takeover bid at AUD 0.270 per share to gain a majority stake of 50.1%. Genex's flagship asset is the Kidston Clean Energy Hub in Queensland, which includes a 50-MW solar park and a 250-MW pumped storage hydro project.
Genex has agreed to a confirmatory due diligence to potentially move towards a definitive agreement with J-Power, which is also a joint development partner for Genex's wind and solar projects. This takeover bid follows a previous offer from J-Power in February, which Genex deemed as under-priced.
Is J-Power's AUD 381 million takeover bid for Genex Power justified?
- J-Power's AUD 381 million takeover bid for Genex Power is justified due to the 65% premium it offers to Genex's six-month average price, providing a significant return for shareholders.
- The acquisition would allow J-Power to gain a majority stake in Genex and further strengthen its presence in the Australian renewable energy market.
- Genex's flagship asset, the Kidston Clean Energy Hub, is a valuable asset that includes a 50-MW solar park and a 250-MW pumped storage hydro project, making it an attractive investment for J-Power.
- The confirmatory due diligence agreed upon by Genex indicates that both parties are serious about potentially reaching a definitive agreement, showing a strong commitment to the proposed transaction.
- J-Power's previous offer in February was deemed as under-priced by Genex, making the current bid more appealing and likely to be accepted by shareholders.