GENEX REJECTS FARQUHAR’S BID
GENEX Power has rejected a takeover bid led by Atlassian billionaire Scott Farquhar on valuation grounds but left the door ajar should the consortium return in the future with a higher buyout offer.
Mr Farquhar’s investment fund Skip Capital, headed up
by the tech executive’s wife Kim Jackson, made a 23c-a-share offer in cash with private equity partner Stonepeak Partners on July 25 after building up a 19.9 per cent stake in Genex in the prior week.
However, Genex said on Monday that its board had unanimously concluded it undervalues the renewable
energy company and it would not offer due diligence to its suitors despite the tilt being pitched at a 64 per cent premium to its pre-offer closing price.
With an eye to teasing out a higher bid, Genex said it would offer limited due diligence information on a non-exclusive basis and said it had a “highly attractive”
future as a renewable energy and storage company.
Genex shares surged nearly 50 per cent last week after the bid was revealed and closed the session at 22c on Friday.
Genex’s main draw is 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.
The company 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.
Stonepeak has about $Us49.3bn ($70.5bn) of assets under management, and in July last year closed a $Us2.75bn fund that was dedicated to renewables projects.
The group’s portfolio of energy and renewables assets includes both onshore and offshore wind as well as solar assets.