Highlights:
- Genex shares have been gaining magnificently on Monday, backed by a significant announcement it made.
- Genex confirmed that it has received a takeover proposal by a consortium that has offered to buy 100% shares in the company at price of AU$0.230 per share.
- The renewable energy projects development company has delivered full year of positive cash flow for the first time in its history.
Shares price of Genex Power Ltd (ASX:GNX) skyrocketed on the S&P/ASX 200 today (25 July 2022) after the company confirmed that it has received a takeover offer. In addition to this, the Australian storage and power generation company, for the first time in the company’s history, has delivered a full year of positive operating cash flow.
On Monday, Genex shares were spotted trading 48.148% higher at AU$0.200 per share at 1:21 PM AEST. Meanwhile, the benchmark index, S&P/ASX 200 Utilities was up by 0.89% to 7,800.10 at 12:07 PM AEST.
Genex share price surges on confirmed takeover bid Genex notified via ASX announcement that it has got an indicative proposal from a Consortium, that includes Stonepeak Partners LLC and Skip Essential Infrastructure Fund, to acquire 100% of the company’s shares.
Skip Essential is a part of Skip Capital. It is an Australian company that invests in future-aware infrastructure and it already has 19.99% ownership of Genex shares. Stonepeak is an alternative investment firm that specialises in real estate and infrastructure. It has an extensive portfolio of renewable and energy assets.
According to the Genex ASX release, the consortium has proposed to pay AU$0.230 per share to Genex shareholders, in cash. The catch is that the company cannot announce any dividend under the indicative proposal terms. In case this happens, then the purchase price could be deducted.
Though, there is no certainty that Genex would accept the indicative proposal. The company has appointed Gilbert and Tobin as legal advisers and Goldman Sachs (NYSE:GS) as its financial adviser.
What happened in Genex during the fourth quarter of 2022? Genex said it continued the construction of the Bouldercombe Battery Project and Kidston Pumped Hydro Project during the quarter ending 30 June 2022. Also, with Electric Power Development Co. Ltd, its joint venture company, the Kidston Stage 3 wind Project continues to advance as per the development timeline.
The company reported AU$8.6 million in revenue during the period, driven by large-scale generation certificate prices.
The company recorded revenue of AU$26.1 million from solar farms in the full year 2022, representing record revenues. The full-year net operating cash flow was AU$4.0 million. Interestingly, for the first time in the company’s history, Genex has reported positive operating cash flow for the full year.
The company ended the period with a cash position of AU$62.9 million.