Atlassian billionaire ups bid for renewable energy company Genex to $346m

The Atlassian billionaires are no strangers to renewable energy. Co-founder Scott Farquhar and wife Kim Jackson have upped their bid for Genex Power to $346m.

A consortium led by Atlassian co-founder Scott Farquhar and his investment banking wife Kim Jackson have increased their bid for renewable energy company Genex Power to $346m.

Genex said Skip Essential Infrastructure Fund and Stonepeak had increased their offer to 25c a share, which was enough for the board to open the company’s books for detailed due diligence.

It’s the latest play by Australia’s richest people to stamp their authority and drive play in the clean energy industry.

Atlassian co-founder Mike Cannon-Brookes has been a vocal critic of the previous government’s stance on climate change and is trying to force AGL to move away from coal-fired power. Meantime, Andrew Twiggy Forrest, who made his fortune in mining, is now focused on also becoming a clean hydrogen exporter.

The Jackson-led consortium last month made a 23 cents per share bid for Genex, a 70 per cent premium to the previous closing price, but this non-binding bid was not enough to give them access to the books.

Ms Jackson and former Macquarie Banker Darren Keogh, from Stonepeak, have met with Genex management and board several times since then, before making a higher offer on Wednesday.

“After careful consideration of the revised indicative proposal the board considers that it is in the interests of Genex Shareholders as a whole to engage further with the consortium,” said Genex in a statement on Wednesday.

“Accordingly, the board has decided to provide the consortium with the opportunity to conduct confirmatory due diligence in order to assist the Consortium to provide a binding proposal to the board.”

Genex has not agreed to exclusive negotiations while due diligence takes place, however the fact that Skip already holds 19.9 per cent of the company may deter other potentially interested parties.

Genex is one of the last remaining listed renewable companies on the Australian Stock Exchange after Tilt Renewables was taken over by an AGL-led group last year for $2.9bn.

Among assets at Genex, is the Kidston pumped hydro project, which has been supported by the federal government’s Clean Energy Finance Corp, and received other state and federal government grants.

The indicative offer is an 85 per cent premium to Genex’s share price previous to the initial takeover offer and is conditional on the findings of the due diligence process.

The Genex board said in a statement it will recommend the takeover bid short of a superior offer, and subject to an independent expert report.

If it proceeds, the takeover would be via a scheme of arrangement and require a shareholder vote.

Genex is being advised by Goldman Sachs and Gilbert + Tobin.

Genex shares were up 6.8 per cent to 24c on the ASX around lunchtime, which is still below the non-binding offer price.