At a glance
- Announcement
- Acquisition
- Location
- Queensland, Australia
Key figures
- Proposed offer per share
- A$0.275
- Alternative cash bid per share
- A$0.270
- Previous offer per share
- A$0.240
- J-Power’s Genex stake
- 7.72%
- Minimum shareholder support
- 75%
Products and programs
March 5, 2024 -- Japanese company J-Power has put in a A$380.9m ($248.7m) bid to fully acquire Australian renewables developer Genex Power.
Genex said in an investor update on Monday that it has received a non-binding, indicative proposal from J-Power to acquire all the company’s ordinary shares for A$0.275 per share. Genex added that the proposed deal also contains an alternative structure, under which J-Power will potentially also make an off-market takeover bid for all of the Genex shares for A$0.270 in cash.
After the announcement, Genex shares surged nearly 38% in early trading on Monday to A$0.255, a three-year high. The A$0.275-per-share offer represents a 48.6% premium on the last close on Friday.
J-Power is a 50% joint development partner of Genex for its Kidston Stage 3 Wind Project and Bulli Creek solar and battery projects in Queensland, Australia.
The Japanese company already holds a 7.72% stake in Genex and previously made an offer to buy the company for A$0.240 per share, Genex said in its statement. J-Power also extended a $35m corporate loan facility to Genex last year, which remained fully drawn at the end of December 2021.
An independent committee of Genex’s board of directors determined the previous offer undervalued the company, but the committee has now unanimously agreed the new offer is in the best interests of its shareholders. The new takeover bid requires a minimum 75% supporting vote from Genex shareholders and approval from Australia’s Foreign Investment Review Board.
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Questions around this news
What are the proposed terms of J-Power’s offer for Genex Power?
J-Power proposed acquiring all of Genex’s ordinary shares for A$0.275 per share. The proposal also outlined an alternative arrangement: an off-market takeover bid offering A$0.270 per share in cash. Genex described the proposal as non-binding and indicative, so the terms do not by themselves mean that a transaction has been completed.
What approvals does the proposed Genex takeover require?
The proposed takeover requires support from at least 75% of Genex shareholders and approval from Australia’s Foreign Investment Review Board. The release does not say that either approval has been obtained, or that the proposal has become a completed acquisition.
What does an off-market takeover bid mean?
An off-market takeover bid is a formal offer made directly to shareholders to acquire their shares, rather than an offer conducted through an on-market trading facility. The offer sets out the consideration and conditions, and shareholders decide whether to accept it. In the Genex announcement, this was presented as an alternative structure with a cash offer per share.
