J-Power's $258 mln bid for Genex wins support from proxy firm ISS (updated)
12/07/2024 04:03
(Adds deal details from paragraph 3)
By Scott Murdoch
SYDNEY, July 12 (Reuters) - Top shareholder proxy firm
ISS has recommended investors vote in favour of Japan's Electric
Power Development's (J-Power) 9513.T A$381 million ($257.56
million) buyout of Australia's Genex Power GNX.AX , according
to an ISS report.
An investor meeting to vote on the deal will be held in
Sydney on Tuesday.
J-Power has offered 27.5 Australian cents per share for
Genex, a renewable energy firm, in which it already owns 7.7%.
The offer was a 48.5% premium to Genex's share price in early
March before the J-Power bid was lobbed.
J-Power had originally offered 24 Australian cents, Genex
said in March, before raising its offer to the current level
that was backed by the buyout target's board.
In its report which was seen by Reuters, ISS said Genex
investors should vote in favour of the bid which requires 75%
shareholder support to proceed.
An independent expert's report from Grant Thornton earlier
found that the J-Power offer was fair and reasonable.
J-Power, which is Japan's major power generator with
coal-fired power plants and hydroelectric facilities, raised its
2030 emission reduction target last year by 1.3 million tons
from 2013 levels.
The Japanese firm is a joint owner and developer of Genex's
Kidston wind project and Bulli Creek clean energy project, which
are both in the Australian state of Queensland.
($1 = 1.4793 Australian dollars)
(Reporting by Scott Murdoch; Editing by Christopher Cushing and
Muralikumar Anantharaman)
((Scott.Murdoch@thomsonreuters.com;))