- Genex Power is one of the ASX’s more promising renewables stocks
- The company is currently developing a massive pumped hydro project in QLD
- Genex shares last traded at 18.5c
Genex Power (ASX:GNX) has confirmed its receipt of a non binding indicative an conditional proposal from Japanese utility J-POWER to acquire all ordinary shares in Genex not already owned.
This comes as one of multiple takeover offers lobbed at Genex by J-POWER in 2024, already a partner with the former on-site some Australian projects.
J-POWER is a 50% JV partner with Genex on its wind and solar battery storage projects at Bulli Creek while Genex continues to develop the 250MW Kidston Hydro project in QLD.
The Japanese utility has also lended Genex $35M in the past.
The latest version of the deal from JPOWER ultimately puts the acquisition price at 27.5cps, nearly 10c higher than where the stock last traded – a considerable premium.
In fact, that’s a premium of nearly 50% and a 65% premium to the 6-month average value of 16.6cps.
On 5 February, J-POWER offered 24cps.
J-POWER is also open to making an off-market takeover bid outright for all Genex shares at 27cps, conditional on shareholder approval.
Genex advised shareholders on Monday they need not take any action at this time.
However, Genex has greenlit J-POWER to move ahead to due diligence.
Genex (ASX:GNX) shares last traded at 18.5cps.