J-Power taps MacCap, Minters to Skip-proof Genex Power bidSarah...

J-Power taps MacCap, Minters to Skip-proof Genex Power bidSarah Thompson, Kanika Sood and Emma RapaportMar 4, 2024 – 12.12pmSaveShareGift this articleListen to this article2 minGenex Power’s 7.72 per cent shareholder J-Power and its bankers at Macquarie Capital have baked in two safeguards in their Monday morning bid to combat Skip Capital’s 19.99 per cent stake.Genex is building the Kidston Clean Energy Hub on the site of the old Kidston gold mine. J-Power’s put forward a dual-track bid. First, there’s the scheme bid at 27.5¢ per Genex share which, if implemented, would give it 100 per cent of the company. But it will also concurrently make an off-market takeover bid at a slightly reduced offer price of 27¢ a share, subject to a minimum 50.1 per cent acceptance. Minter Ellison is providing legal advice to the bidder.While J-Power stopped short of naming Scott Farquhar’s Skip Capital as the reason, it’s clear that’s what its advisers were thinking of when they rebooted the dual-track bid structure seen at Azure Minerals late last year.Skip EIF Enterprises Pty Ltd owns 19.99 per cent of Genex and in 2022, lobbed a bid to buy it for 25¢ a share with Stonepeak Partners before walking away. Of note, it hasn’t yet committed its stake to supporting J-Power’s bid.The second set of safeguards – no talk, no shop, no DD – is much more customary. But Genex’s ASX announcement called out Skip and related entities as parties with whom interaction is prohibited during the four-week exclusive due diligence.RELATED QUOTESGNXGenex Power$0.245 -2.00%1 year1 dayMar 23Jun 23Sep 23Mar 240.1200.1600.2000.2400.280Updated: Mar 12, 2024 – 6.29am. Data is 20 mins delayed.View GNX related articles ADVERTISEMENTCONTENT RESUMES ON SCROLLAdvertisementTo be clear, there’s no suggestion Skip or another interloper is about to hit back with a competing proposal, but J-Power is watching its back. It’s already a 50 per cent partner in Genex’s Kidston Stage 3 Wind and Bulli Creek projects and provided it with a $35 million loan facility last year.As for Skip, it would be interesting to see what it does with its 19.99 per cent stake. Selling into J-Power’s bid should get some tongues wagging on the Atlassian co-founder’s ambitions to support energy transition.“We have been a supportive shareholder of Genex, and we believe that long-term, private capital can help the company reach its full potential,” Kim Jackson said at the time.Goldman Sachs is advising Genex.RELATEDWhy Atlassian’s Farquhar wants to take Genex privateGet a first look at tomorrow’s headlines. Sign up to the Street Talk First Look newsletter.Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@copyright linkKanika Sood is a journalist based in Sydney who writes for the Street Talk column. Email Kanika at kanika.sood@copyright link.auEmma Rapaport is a co-editor of the Street Talk column. Prior to that, she was a markets reporter at The Australian Financial Review. Connect with Emma on Twitter. Email Emma at emma.rapaport@copyright linkSaveShareGift this articleLicense articleREAD MOREStreet TalkMergers & acquisitionsGenex PowerScott FarquharMORE ON GENEX POWERBusiness SummitFortescue says hydrogen hopes rest on a halving of power pricesFortescue Energy boss Mark Hutchinson says Australia must get clean power prices down to $US30 a megawatt hour if it wants green hydrogen projects to go ahead.Mar 11, 2024ChanticleerOne of the world’s hottest themes is giving the ASX a missThe exchange just hasn’t cracked it as a destination for the next wave of green electricity generators. Genex Power is the latest to be worth more in private hands.Mar 10, 2024See all Genex Power news ReportsWomen to Watch 2024This article is part of the Women to Watch special report on the next generation of leaders, published on 8 March 2024.SPONSOREDLATEST STREET TALKSee all Street Talk The Daily Habit of Successful PeopleMY ACCOUNTSUBSCRIBEABOUT USCONTACTMAGAZINESCOLUMNSPODCASTSMARKETS DATALISTSEVENTSOUR NETWORKTERMS AND CONDITIONS© Copyright 2024 The Australian Financial Review, Nine Entertainment Co. Pty Ltd0.250