Leading Japanese energy utility J-Power has offered A$375 million to acquire Queensland's Genex Power.
The J-Power offer, priced at 27.5 cents per share, suggests a nearly 50% premium over Genex's last closing price, with the proposal marking the latest iteration of Japanese investment in Australian energy.
J-Power is an existing Genex shareholder with 7.72% ownership and it also contributes as a lender, collaborating with Genex to developed projects including the Kidston Stage 3 Wind and Bulli Creek Solar and Battery projects in northern Queensland.
Struggling to progress its A$777 million Kidston pumped hydro project, Genex has seen its share price slide after it peaked at 34 cents in 2017. As such, Genex views the takeover offer as potentially beneficial to shareholders and has opted to pursue further discussions with J-Power.
J-Power expressed its commitment to enhancing Genex's future and the Australian renewable energy sector, citing its strong partnership and operational expertise as key factors in fostering new developments. The proposal aims to catalyse further investment in Genex's projects, promising a brighter future for renewable energy in Australia.
“Our proposal will accelerate investment in the future of Genex and renewables in Australia, with J-Power bringing the capital and operational expertise to fund and operationalise new developments,” said a J-Power spokesman.
An alternative takeover proposition at 27 cents per share, also requiring a 50% minimum acceptance, has been prepared should Genex's shareholders decline the scheme offer.
This move comes 14 months after Scott Farquhar’s Skip Capital and Stonepeak Partners retracted their 25 cents per share takeover bid for the Queensland-based renewables developer following four months of due diligence.