Japanese utilities giant’s proposed takeover of Genex lands FIRB approval

J-Power, one of Japan’s largest power companies, has announced that the Foreign Investment Review Board (FIRB) has provided written notice advising that the Commonwealth has no objections to its $380 million (USD 251 million) bid to buy renewables developer Genex Power.

The acquisition, to be carried out by J-Power subsidiary JPGA Partners, involves purchasing all Genex shares not already owned by the Japanese company through a scheme or a simultaneous takeover offer.

J-Power already owns 7.72% of Genex and is a lender to the company, whose biggest project is the 250 MW / 2,000 MWh Kidston pumped hydro venture being constructed in northern Queensland. It is also Genex’s 50% partner in the Bulli Creek solar and battery and Kidston Stage 3 wind projects in northern Queensland.

J-Power’s proposal, announced in April, includes a non-binding scheme offer pitched at 27.5 cents per share and an alternative conventional takeover at 27 cents per share that the Japanese company proposes to make if Genex shareholders reject the scheme offer.

The scheme offer, which the Genex board has previously declared is in the best interests of its shareholders, values the Sydney-headquartered company at $380.9 million and implies an enterprise value of $1,035 million.

The implementation of the acquisition still requires Genex shareholder approval, court approval for the scheme, and a 50% minimum acceptance condition for the takeover offer if the scheme is not approved. Genex shareholders will vote on the scheme at a meeting to be held on 16 July 2024.

Among Genex’s portfolio of renewable energy and generation projects are three operating projects, including a 50 MW solar farm at the Kidston site, the 50 MW / 100 MWh Bouldercombe battery energy storage system in central Queensland, and the 50 MW Jemalong Solar Project in New South Wales.