In today’s briefing:
- Genex: Atlassian’s Farquhar Makes An Offer
- Genex’s Offer of A$0.23 from Skip Capital Likely Won’t Cut It
Genex: Atlassian’s Farquhar Makes An Offer
- Renewable energy play Genex Power Ltd (GNX AU) has announced a non-binding indicative proposal from Atlassian’s Scott Farquhar and Stonepeak, by way of a Scheme, at A$0.23/share.
- That’s around a 64% premium. Farquhar holds a 19.9% stake.
- Farquhar, along with Atlassian co-founder Mike Cannon-Brookes, backed Genex capital raising in March last year.
Genex’s Offer of A$0.23 from Skip Capital Likely Won’t Cut It
- Genex Power Ltd (GNX AU) shares rose 44% on the back of an A$0.23 per share offer from Skip Capital and Stonepeak. Skip also increased its stake to 19.99%.
- At first glance, the offer looks generous in comparison to peer multiples and recent share prices. However, the offer is opportunistic partly due to Genex’s 500MW pipeline of projects.
- Benchmarking the precedent transaction multiples suggests that Genex’s existing portfolio is worth at least A$0.27 per share. The Board should engage for a higher price.
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