Renewable energy group Genex Power has given a ‘soft rejection’ to Atlassian co-founder Scott Farquhar’s Skip Capital and US-based private equity fund Stonepeak after the two firms made an unsolicited takeover bid last week.
According to AFR, Genex’s board told Skip Capital and bid partner Stonepeak it wouldn’t recommend a bid or give it a full look at the books at 23¢ a share, but said it would be open to management meetings.
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The rejection was described as a “soft rejection”, indicating that Genex’s board wasn’t opposed to recommending a deal.
Genex shares have traded at or below 15¢ since March, and hadn’t closed above 20¢ all year until news of the takeover bid emerged, however, last year the renewables firm was regularly trading around the 23¢ mark, and small cap broker target prices of 29¢ to 35¢.
Genex is the only pure-play renewable energy stock left on the ASX, putting it in a desirable position.
The Skip/Stonepeak bid comes as the government pushes to speed up the transition to cleaner energy, aiming for the national electricity market to be 82 per cent powered by renewables, such as wind and solar, up from 30 per cent now by 2030.
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Genex is building a pumped hydro energy storage project in Queensland, where it also has a solar farm. It recently raised $40 million for a battery project.
“We see strong promise in Genex’s portfolio,” Skip Capital CEO Kim Jackson said in a statement.