The board of ASX-listed Genex Power Limited (ASX: GNX) has rejected a takeover offer from Altassian co-founder Scott Farquhar because it undervalued the company.
Last Monday, after building a 19.9% stake in Genex through a consortium controlled by Skip Capital, the family VC run by Farquhar’s wife Kim Jackson, in a partnership with US alternative asset manager Stonepeak Partners, Skip Essential Infrastructure Fund launched a acquisition of $320 million bid at 23c per share, a 70% premium to the company’s closing price on July 22.
“After careful consideration of the indicative proposal (including consultation with its advisors), Genex’s board of directors has unanimously concluded that the indicative proposal undervalues Genex and therefore is not in the best interest of Genex shareholder as a whole,” it said. the company today in a statement to the ASX.
The company denied the consortium access to the books for due diligence, but said they were “willing to work constructively” with the Skip Capital consortium to explore whether it can submit a revised proposal that the company’s board of directors can submit. could recommend.
“Whether or not the Consortium has submitted a revised proposal, the Board of Directors believes Genex has a very attractive future as a dedicated renewable energy and storage company,” the statement said.
Genex has more than $1 billion in renewable energy generation and storage assets, including the five-year-old Kidston Solar Project, which generates up to 50 MW of power. The company has also converted the Kidston Gold Mine into a 250 MW pumped-storage plant. Government Renewable Energy Agency ARENA has pledged $47 million for that project.
Genex also runs the 50MW Jemalong Solar Project at Forbes in western NSW, and has a deal with Tesla for its 50MW battery storage project near Rockhampton, Queensland.
It is the only pure play renewable energy and storage company featured on the ASX.
In quarterly results through June 30, the 11-year-old reported revenue of $8.6 million, with solar farms totaling for FY22 at $26.1 million, with net operating cash flow for the first time in a full year at $4 million. .