Board says Skip Essential Infrastructure Fund’s takeover bid ‘undervalues’ Genex

The board of renewable energy generation company, Genex Power has rejected a takeover bid by Skip Essential Infrastructure Fund.

A push by Skip Essential Infrastructure Fund to pull the strings at Genex Power has been rejected by the board. Picture: Getty Images

The board of renewable energy generation company, Genex Power (ASX: GNX) has rejected the takeover bid by Skip Essential Infrastructure Fund, headed by Atlassian co-founder Scott Farquhar’s wife, Kim Jackson.

Shares in the company skyrocketed heavenwards on the indicative offer to acquire shares at 23c each last week, valuing the company at more than $320 million – a 70% premium to its closing price.

And yet the takeover offer undervalues Genex, the board says, and therefore is not in the best interest of shareholders.

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However, the company is willing to “engage constructively” with the consortium to explore whether a revised proposal that is capable of being recommended to Genex shareholders could be submitted.

Skip currently holds 19.99% of GNX shares but GNX says irrespective of whether the Consortium provides a revised proposal, the boards believe the company has a highly attractive future as a dedicated renewable energy and storage company.

Genex has a diverse portfolio of more than $1bn of renewable energy generation and storage assets across Australia, including the first pumped storage hydro project to be developed in Australia in more than 40 years.

It is not only the only pure-play renewable energy and storage company listed on the ASX but its 100MW of existing operating solar projects are benefiting from current elevated pricing in the National Electricity Market.

Genex’s 300MW of fully funded storage projects currently under construction which are also poised to benefit from the accelerating energy transition.

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Other renewable energy ASX news

FRONTIER ENERGY (ASX:FHE)

FHE’s large-scale Bristol Solar Project in southwest WA is poised to be a major source of renewable energy as the company’s moves towards becoming a green hydrogen producer.

The company says it is nearing the completion of its hydrogen study, with results to be announced this month, after preliminary results found the initial capital required for the project is both cheaper and quicker to find than originally planned.

This is due to its access to the SWIS power grid, only 3.5km from the stage-one site, allowing the company to sell power for green hydrogen into the SWIS.

It also provides the opportunity for Frontier Energy to purchase renewable energy from other providers (such as wind energy) during low or no-sun periods when the solar plant is not generating power.

Using other sources of clean energy and power arbitrage or swaps, the SWIS may be able to provide a “virtual” battery for the project.

Multiple fresh water sources exist in the region avoiding the need for a desalination facility and the Damper to Bunbury Natural Gas Pipeline (DBNGP) is Western Australia’s most significant gas transmission asset – only 3km from the BSS project, where the pipeline branches off to provide gas to Alcoa’s Wagerup Alumina Refinery.

PURE HYDROGEN (ASX:PH2)

Clean energy company Pure Hydrogen focused on growth and development of its hydrogen fuel and hydrogen fuel cell vehicle business during the June quarter.

Through its stake in H2X, Pure Hydrogen is advancing the development of the demonstration hydrogen-powered garbage truck for JJ Richards and the launch of the Warrego SUV.

A new HFCV manufacturing site was established in Sale, Victoria while H2X also established a Swedish subsidiary and signed MOUs for vehicles to be delivered to Gothenburg and Trelleborg cities in 2023.

Pure Hydrogen is directly collaborating with the state government of Sarawak in Malaysia to deliver products including vehicles and H2 generators.

After the end of the quarter, Pure Hydrogen’s Investee company Botala Energy, in which it holds a 19.99% stake, successfully raised $5M in its initial public offering to fund a multi-well program to prove commercial gas flows at the Serowe CBM project and develop other energy projects in Botswana.

This content first appeared on stockhead.com.au

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