The Genex Power Ltd (ASX: GNX) share price is taking off on Monday after the company confirmed a $300 million takeover bid and released its latest quarterly update.
The Genex share price launched 51.8% on open to reach 20.5 cents. At the time of writing, it has slipped slightly to trade at 19.5 cents – representing a 44.44% gain.
Let's take a closer look at what's driving the renewable energy company's stock on Monday.
Image source: Getty Images
Genex share price takes off on takeover bid
It's shaping up to be a huge day for the Genex share price, which rocketed more than 50% in early morning trade.
The gains came after the company confirmed it had received a takeover bid valuing it at more than $300 million and representing a 70% premium on Friday's close.
The 23-cent per share cash bid was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners.
The company's board noted the acquisition proposal was unsolicited and said it "has not yet formed a view on [the bid's] merits".
The bid comes after Skip Capital snapped up a 19.99% stake in Genex's stock last week.
Genex posts record revenue and cash flow
It certainly makes for an exciting period for the company, which posted its first full year of positive cash flow this morning.
Genex's operating cash flow for financial year 2022 came to $4 million. Its solar farms brought in record unaudited revenue of $26.1 million in that time while the company reported $8.6 million of revenue for the June quarter.
Genex benefited from strong electricity prices last quarter while construction continued at its Kidston Pumped Hydro Project and Bouldercombe Battery Project.
The company's renewable energy generation and storage portfolio is worth more than $1 billion.
