The proposed $346 million acquisition of Genex Power by Atlassian CEO Scott Farquhar and US private equity firm Stonepeak has been called off, the renewable energy company announced on Wednesday.
In an announcement to the ASX, Genex said that after extensive discussions, the syndicate decided to back out of the 25¢ A-share offering, which the company had made privately.
Talks between billionaire Farquhar’s Skip Essential Infrastructure Fund and ASX-listed Genex, which has $1 billion in renewable energy assets across Australia, began in August after the company received an initial $300 consortium proposal million dollars, or 23¢ per share, earlier in the year. Skip is very much a family affair, with Farquhar’s wife Kim Jackson being the group’s chief executive and co-founder. Jackson is the former investment director of infrastructure investment giant Hastings Funds Management.
Genex shares fell after the announcement, falling 22 percent to 12 cents during Wednesday’s session.
Genex said it has worked constructively with the consortium over the past four months and remains confident it has compelling prospects.
“The Company remains focused on the continued delivery of the 250 MW Kidston pumped storage hydro project and the 50 MW Bouldercombe battery project alongside its attractive pipeline of growth opportunities.”
Genex’s flagship Kidston Clean Energy Hub in north Queensland, which aims to integrate large-scale solar power generation with pumped storage power plants, is also exploring potential multi-tier wind and solar projects.
However, Genex reported earlier this year that they encountered an “unexpected geological feature” during construction that caused water to enter one of the tunnels at their Kidston site, and that it cost an additional $10 million to $15 million would add project.
https://www.smh.com.au/business/companies/atlassian-billionaire-scott-farquhar-pulls-346m-bid-for-genex-power-20221228-p5c93u.html?ref=rss&utm_medium=rss&utm_source=rss_business Atlassian billionaire Scott Farquhar has received a $346 million takeover bid for renewable energy company Genex Power