J-Power, a leading Japanese energy utility, has made a generous offer to buy Genex Power, a Queensland-based renewable energy developer. The offer is worth A$375 million and values Genex at 27.5 cents per share, which is almost 50% higher than its last closing price. This is the latest example of Japanese investment in Australian energy.
J-Power is not a stranger to Genex. It already owns 7.72% of its shares and has been a lender and a partner in some of its projects, such as the Kidston Stage 3 Wind and Bulli Creek Solar and Battery projects in northern Queensland.
Genex has been facing challenges in advancing its flagship project, the A$777 million Kidston pumped hydro project, which has caused its share price to decline since 2017. Therefore, Genex sees the takeover offer as a potential opportunity for its shareholders and has agreed to enter into further negotiations with J-Power.
J-Power has stated that it is committed to supporting Genex’s future and the Australian renewable energy sector, and that it can bring capital and operational expertise to fund and deliver new projects. The proposal aims to boost investment in Genex’s projects and create 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.
In case Genex’s shareholders reject the scheme offer, J-Power has prepared an alternative takeover proposal at 27 cents per share, which also requires a minimum acceptance of 50%.
This development comes more than a year after Skip Capital, owned by Scott Farquhar, and Stonepeak Partners withdrew their 25 cents per share takeover bid for Genex after four months of due diligence.