Fortescue, News, Sustainability, Takeover bids

A new horizon for Genex solar


Solar power supplier Genex has become the subject of a takeover bid from its partner Electric Power Development (J-Power) amidst a solar offtake agreement with Fortescue.

Last week, Genex announced it had pushed back the sunset date on its 25-year supply deal with Fortescue for the Gibson Island hydrogen project in Queensland to April 30.

Now the solar supplier has announced J-Power has issued a non-binding, indicative and conditional proposal to acquire all Genex shares it doesn’t already own.

J-Power is a 50 per cent joint development partner of Genex at its Kidston Stage 3 Wind and Bulli Creek solar and battery projects and holds 7.72 per cent of Genex shares on issue.

Genex and J-Power are also developing the Bulli Creek solar and battery project in Queensland, which is set to provide Fortescue up to 337.5 megawatts (MW) of solar energy.

The power purchase agreement (PPA) with Fortescue enables Genex and J-POWER to commit to the first solar stage development at Bulli Creek at a minimum capacity of 450MW, with the deal providing a 75 per cent contracted revenue stream.

J-Power extended a $35 million corporate loan facility to Genex in 2023, which remained fully drawn at December 31 2023. The company’s takeover bid is by way of a scheme of arrangement for $0.275 per Genex share.

The offer also contains an alternative structure where J-POWER could concurrently make an off-market takeover bid for all of the Genex shares for $0.270 per share.

An off-market takeover would depend on the original offer having not been approved by Genex shareholders, or fulfilment of the 50.1 per cent minimum acceptance condition of the offer.

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