Australia's Genex Power gets $220 mln take-private offer led by tech billionaire (updated)

Genex Power

25/07/2022 02:46

* Offer pitched at 70% premium to Genex's last close
    * Genex says yet to form a view on the offer
    * Tech billionaire's fund owns 19.99% of Genex

 (Adds bidder's comments)
    By Sonali Paul
    MELBOURNE, July 25 (Reuters) - Australian renewable energy
developer Genex Power  GNX.AX  has received an unsolicited A$319
million ($220 million) takeover offer from two private equity
firms, led by Atlassian co-founder Scott Farquhar, both sides
said on Monday.
    The offer of 23 Australian cents a share was pitched at a
70% premium to Genex's close last Friday. Its shares shot up 52%
to a high of 20.5 cents on Monday after the announcement,
indicating investors don't expect a higher offer.
    "The Genex Board has not yet formed a view on the merits of
the Indicative Proposal or any potential further engagement with
the Consortium," Genex said.
    The proposed bid, subject to due diligence, came from
Farquhar's Skip Essential Infrastructure Fund, which Genex said
now owns a 19.99% stake in the company, and Stonepeak Partners
LLC. 
    The bid comes as Australia's Labor government pushes to
speed up the transition to cleaner energy, aiming for the
national electricity market to be 82% powered by renewables,
such as wind and solar, up from 30% now by 2030.
    Genex is building a pumped hydro energy storage project in
Queensland, where it also has a solar farm. It recently raised
A$40 million for a battery project.
    "We see strong promise in Genex's portfolio," Skip Capital
Chief Executive Officer Kim Jackson said in a statement. 
    Skip and Stonepeak aim to help Genex's current management
build the company to play a "substantially larger role in
Australia's energy transition", she said.
    Genex has appointed Goldman Sachs as an advisor on the
proposed deal. The private equity consortium is being advised by
Jarden and RBC Capital Markets.

($1 = 1.4486 Australian dollars)

 (Reporting by Sonali Paul; editing by Uttaresh.V)
 ((Sonali.Paul@thomsonreuters.com; +61 407 119 523;))