Atlassian billionaire to pump fortune into Genex to boost renewables

Skip Capital, the company controlled by Atlassian co-founder Scott Farquhar and his wife Kim Jackson has made a 23 cents a share joint takeover bid for Genex, the company building the Kidston pumped hydro project in north Queensland.

Jul 25, 2022, updated Jul 25, 2022
Atlassian co-founder and billionaire Scott Farquhar

Atlassian co-founder and billionaire Scott Farquhar

The bid, which is jointly run through a Skip subsidiary, Skip Essential Infrastructure Fund, and private equity company Stonepeak Partners, is at a big premium to the 13 cents a share the company closed at on Friday.

The offer values Genex at about $318 million compared with its market value last week of $186 million.

Skip already holds 19.9 per cent of the company after big trades in Genex shares last week during which about 9 per cent of the company swapped hands.

In a statement to the ASX this morning, Genex said the joint bid was indicative, conditional and non-binding.

“The receipt of the indicative proposal is the result of an unsolicited approach to the Genex board by the consortium regarding a potential transaction,” Genex said.

“The Genex board has not yet formed a view on the merits of the indicative proposal or any further potential engagement with the consortium.

“There is no certainty that the Genex board will engage further with the consortium in relation to the indicative proposal or that the potential transaction will proceed.”

Farquhar’s Atlassian partner Mike Cannon-Brookes recently bought Dunk Island in Queensland’s Whitsunday group for $24 million and is a backer of the massive Sun Cable renewables project in the Northern Territory.

Cannon-Brookes was also behind a failed bid to takeover AGL earlier this year.

Skip Capital describes itself as a company that was building a portfolio of “big vision” companies.

Apart from the Kidston pumped hydro project which is still under construction, Genex owns a solar farm and is in the process of developing a battery near Rockhampton. It also has plans for a wind farm near Kidston.

Genex shares jumped 50 per cent at the opening of the ASX this morning but were still sitting below the 23 cent offer price.



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