NSW approves J-POWER’s $380M buyout of Genex Power, giving it ownership of QLD net zero project

The NSW Supreme Court has OK’d the buyout of Genex Power (ASX:GNX) by Japanese giant J-POWER, no stranger to Australian FDI.

The Japanese utility will pick up Genex and its renewables projects – most notably the Kidston Pumped Hydro project in QLD – for $380M vs Genex’s $374M market cap as at 11.30am Sydney time on Friday.

Shareholders first approved the purchase earlier this week; now the state court’s decision essentially locks in the deal.

All cards in order, GNX shares will suspend from trading on Monday 22 July and the company will eventually de-list. Shareholders will be payed out little over a week later on the last day of the month.

The company noted the takeover offer is valued at 27.5cps; the price rose earlier in the week to match the price, bringing 1Y returns over 70%.

Genex has managed to quietly keep building a hydro dam through the COVID years, but not without difficulties, similar to those affecting Snowy 2.0 in the sense of COVID disrupting supply chains, and the ripple effects that follow thereafter.

The stock has long suffered for a lack of liquidity. I’ll spare you from the obvious hydropower jokes.

Also worth noting: J-POWER will now take ownership of a project that forms part of QLD’s state government’s net zero strategy at both the 2030 and 2050 consideration points.

GNX last traded at 27cps.