Today could be a big one for the Genex Power Ltd (ASX: GNX) share price after the company received a takeover bid worth more than $300 million.
The 23 cents per share bid for the company was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital.
The Genex share price was 13.5 cents at its previous close.
Let's take a closer look at the takeover proposal announced by the company this morning.
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Genex share price on watch following takeover bid
The Genex share price could be about to take off after the company confirmed a previously-speculated takeover bid on Monday. Additionally, the company released its quarterly results today.
A consortium made up of the Skip Essential Infrastructure Fund and Stonepeak Partners has placed a 23 cent per share bid for Genex, representing a total valuation of more than $300 million and a 70% premium on the company's previous close.
Skip Capital – headed by Farquhar's wife, former Hastings Funds Management director Kim Jackson – snapped up a 19.99% interest in the renewable energy company's stock last week.
Genex's portfolio of renewable energy generation and storage projects is worth more than $1 billion.
Commenting on the bid, Jackson said, courtesy of The Australian:
Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia's energy transition.
The Genex board hasn't promised it will engage with the takeover bid. It noted a potential acquisition would be subject to its recommendation, due diligence, and regulatory approvals. Notably, it would need the approval of the Foreign Investment Review Board.
And in other news likely to move the Genex share price today, the company achieved record revenue and its maiden full-year positive cash flow last financial year.
Its solar farms brought in $26.1 million of revenue (unaudited) over financial year 2022. Meanwhile, its net operating cash flow reached $4 million.
