Genex gets sweetened $346.3m buyout offer

Genex's Kidston Solar Project (j-power)
The 50MW Kidston Solar Project (Image: Genex Power)

Renewable energy developer Genex Power has received a sweetened buyout offer of about $346.3 million from a consortium led by Scott Farquhar and Kim Jackson’s Skip Capital and US-based private equity fund Stonepeak.

According to Reuters, the consortium raised its offer to 25c per share from 23c apiece, with the new bid representing a 13.6 per cent premium to Genex’s last close.

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Genex said its board would recommend the proposal if the private equity firms make a binding offer.

The company is the only pure-play renewable energy and storage firm listed on the Australian bourse at a time when the country is trying to speed up the transition from a coal-dominated grid to wind and solar, backed up by energy storage.

Genex, which had earlier given the consortium limited due diligence, will now provide full access in hopes of getting a binding offer.

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.

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