Genex share price in focus amid Atlassian co-founder's $300m takeover bid

The 23 cent per share takeover bid represents a 70% premium on Genex's previous close.

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Key points
  • The Genex share price could be one to watch today following a $300m takeover bid
  • The proposal was made by a consortium including Atlasssian co-founder Scott Farquhar's investment fund 
  • Genex says the bid was unsolicited and hasn't put forward its opinion on the proposal yet. The company also released its latest quarterly update this morning

Today could be a big one for the Genex Power Ltd (ASX: GNX) share price after the company received a takeover bid worth more than $300 million.

The 23 cents per share bid for the company was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital.

The Genex share price was 13.5 cents at its previous close.

Let's take a closer look at the takeover proposal announced by the company this morning.

Woman looking at her smartphone and analysing share price.

Image source: Getty Images

Genex share price on watch following takeover bid

The Genex share price could be about to take off after the company confirmed a previously-speculated takeover bid on Monday. Additionally, the company released its quarterly results today.

A consortium made up of the Skip Essential Infrastructure Fund and Stonepeak Partners has placed a 23 cent per share bid for Genex, representing a total valuation of more than $300 million and a 70% premium on the company's previous close.

Skip Capital – headed by Farquhar's wife, former Hastings Funds Management director Kim Jackson – snapped up a 19.99% interest in the renewable energy company's stock last week.

Genex's portfolio of renewable energy generation and storage projects is worth more than $1 billion.

Commenting on the bid, Jackson said, courtesy of The Australian:

Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia's energy transition.

The Genex board hasn't promised it will engage with the takeover bid. It noted a potential acquisition would be subject to its recommendation, due diligence, and regulatory approvals. Notably, it would need the approval of the Foreign Investment Review Board.

And in other news likely to move the Genex share price today, the company achieved record revenue and its maiden full-year positive cash flow last financial year.

Its solar farms brought in $26.1 million of revenue (unaudited) over financial year 2022. Meanwhile, its net operating cash flow reached $4 million.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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