A majority of shareholders have approved Japanese company Electric Power Development’s (J-Power) A$381 million ($257.56 million) buyout of Genex Power, the Australian company said on Tuesday.
J-Power offered 27.5 Australian cents per share for the renewable energy firm of which it already owns 7.7%.
The bid was backed by 94.88% of shareholder votes cast in the Genex investor meeting, surpassing the requirement of at least 75% for the deal to proceed. A majority of individual shareholders backed the deal, the company added.
The scheme is projected to become effective on July 31, once other regulatory approvals are received.
J-Power, a major power generator with coal-fired power plants and hydroelectric facilities, deepened its 2030 emission reduction target last year by 1.3 million tons from 2013 levels.
The Japanese firm is a joint owner and developer of Genex’s Kidston wind project and Bulli Creek clean energy project, which are both in the Australian state of Queensland.
The offer represented a 48.5% premium to Genex’s share price in early March before the J-Power bid.
J-Power had originally offered 24 Australian cents, Genex said in March, before raising its offer to the level that was backed by the buyout target’s board.
Genex’s largest shareholder Skip Capital backed the bid. Skip Capital, an investment firm founded by Atlassian co-founder Scott Farquhar, holds 19.9% of Genex, local media reported on Tuesday.
Reuters
