In a move to enhance the renewable energy sector, Japan’s Electric Power Development Co., known as J-Power, has successfully secured approval for its A$381 million ($257.56 million) acquisition of Australia’s Genex Power. This approval came following a decisive vote on Tuesday, as announced by Genex.
J-Power’s acquisition bid, valued at 27.5 Australian cents per share, garnered strong support with 83.54% of proxy votes in favor during an investor meeting in Sydney. This overwhelming approval surpassed the required threshold of 75%, ensuring the deal’s progression. Notably, a majority of individual shareholders also backed the acquisition, underscoring confidence in the proposed transaction.
Genex Power, recognized for its renewable energy initiatives, has been a joint partner with J-Power in various projects including the Kidston wind and Bulli Creek clean energy projects in Queensland, Australia. The buyout offer presented a substantial 48.5% premium over Genex’s share price prior to J-Power’s initial bid in March.
The acquisition by J-Power, a major player in both coal-fired and hydroelectric power generation, aligns with its commitment to expanding renewable energy capacities. Last year, the firm intensified its efforts towards environmental sustainability by setting a more ambitious 2030 emission reduction target, aiming to decrease emissions by 1.3 million tons from 2013 levels.
This acquisition marks a strategic step for J-Power in bolstering its presence in Australia’s renewable energy market, leveraging Genex’s established projects and expertise. The buyout was further endorsed by Skip Capital, Genex’s largest shareholder, which holds a significant 19.9% stake in the company. Skip Capital, an investment firm co-founded by Atlassian’s Scott Farquhar, supported J-Power’s increased offer after an initial bid adjustment earlier this year.
With regulatory and shareholder approvals now secured, J-Power is set to advance its integration plans for Genex Power, aiming to enhance operational synergies and accelerate renewable energy development in Australia.
