The Genex Power Ltd (ASX: GNX) share price is in the green after the company knocked back the $300 million takeover proposal put to it last week.
The renewable energy company's board said the 23 cents per share offer – representing a 70% premium at the time of its announcement – undervalues the company. Though, it has left the door open for a revised proposal.
The Genex share price is 21.75 cents at the time of writing. That's 1.16% higher than its previous close.
Let's take a closer look at the latest news from the ASX-listed company.
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Genex share price gains despite rejected bid
The Genex share price is lifting this morning. Its gain comes amid news the company won't be granting due diligence following a $300 million takeover bid.
The unsolicited bid was put forward by a consortium made up of Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners last week.
The company's board says it believes the bid undervalues the company and, thus, isn't in shareholders' best interests.
However, it will allow the consortium access to certain limited due diligence information. It hopes the extra information will help the party put together a revised acquisition proposal.
The Genex board also outlined reasons it believes the company has a bright future, even if it isn't offered a higher bid.
They included the company's renewable generation and storage assets, which are worth more than $1 billion.
It also noted Genex's position as the ASX's only renewable energy and storage pure play and the company's 100 megawatts of solar projects – already benefitting from higher pricing.
Finally, it noted the company's "significant" pipeline of renewable generation and storage projects.
The Genex share price surged 44% when the takeover bid was announced alongside the company's quarterly report last week.
Today's gain leaves Genex shares 7.5% higher than they were at the start of 2022. Though, they are 10% lower than this time last year.
