Genex in surge after $300m bid

Offer near double traded price

SHARES in Genex Power have surged nearly 45 per cent after the renewable energy developer confirmed it had received a $300m takeover offer by a consortium headed up by Atlassian billionaire Scott Farquhar.

Mr Farquhar’s investment fund Skip Capital, headed up by the tech executive’s wife Kim Jackson, has partnered with US private equity group Stonepeak Partners in the 23c a share bid, after building up a 19.9 per cent stake last week.

The cash offer was announced on Monday morning, sending Genex shares 48 per cent higher in early afternoon trade to 20 cents.

In a statement, the Genex board said the proposal was unsolicited and it had “not yet formed a view on the merits of the bid” or any potential further engagement with the consortium. The offer is subject to conditions, and would require Foreign Investment Review Board approval.

At 23 cents, it is close to double the recent traded price of Genex, which closed at 13.5 cents on Friday. The company’s share price has been on a steady decline since hitting 26c at the start of last year.

Skip and Stonepeak said the takeover bid reflected their “strong commitment to supporting the energy transition in Australia”.

“The Skip Essential Infrastructure Fund and Stonepeak are passionate about achieving a successful transition to a renewable energypowered future and believe Genex and its current management can play a major role in contributing to this outcome if backed by private, mission aligned capital,” the group said in a statement.

Genex is one of the few remaining listed renewable energy companies in Australia following takeovers of rivals, including the $2.9bn sale of Tilt Renewables last year to a consortium led by AGL, the Future Fund and QIC.

The company’s main draw its Kidston renewable energy hub in far-north Queensland, which includes a 50MW solar farm, 250MW hydro project, a further 270MW solar development and a 150MW wind farm.

Skip along with Mike Cannon-Brookes’ Grok Ventures emerged as backers of Genex in March 2021 after first ploughing money into a $115m capital raising.

Ms Jackson said Skip had been a “supportive shareholder of Genex and we believe that long-term, private capital can help the company reach its full potential”.

“We see strong promise in Genex’s portfolio and together the Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia’s energy transition,” she said in a statement.

Stonepeak, which is largely made up of ex-Macquarie executives, has about $US49.3bn ($71.27bn) of assets under management, and in July last year closed a $US2.75bn fund dedicated to renewables projects.

Its portfolio of assets includes onshore and offshore wind and solar.