JPGA Partners Withdraws Takeover Bid for Genex Power Limited
GENEX POWER LIMITED (GNX) Share Update July 2024 Monday 22nd
JPGA Partners Withdraws Takeover Bid for Genex Power
In a significant development for Genex Power Limited (ASX: GNX), JPGA Partners Pty Ltd has withdrawn its takeover offer following the approval of a scheme of arrangement by Genex shareholders and the Supreme Court of New South Wales.
Instant Summary:
- JPGA Partners withdraws takeover bid for Genex Power Limited.
- Genex shareholders approve a scheme of arrangement.
- Supreme Court of New South Wales approves the scheme.
- All unaccepted offers under the takeover bid are withdrawn.
- Genex shares to be acquired under the scheme.
Background of the Takeover Offer
JPGA Partners Pty Ltd, a wholly-owned subsidiary of Electric Power Development Co., Ltd., had proposed to acquire all shares in Genex Power Limited that it did not already own. The acquisition was to be executed through either a scheme of arrangement or an off-market takeover offer.
The scheme of arrangement offered Genex shareholders a cash consideration of $0.275 per share, while the simultaneous off-market takeover offer provided $0.270 per share, conditional on the scheme not being approved by Genex shareholders or the court.
Approval of the Scheme
On 16 July 2024, Genex shareholders approved the scheme of arrangement at a scheme meeting. Subsequently, on 19 July 2024, the Supreme Court of New South Wales made orders approving the scheme. This approval satisfied one of the conditions for the takeover offer, rendering it void.
Withdrawal of the Takeover Offer
Following the court's approval, JPGA Partners received consent from the Australian Securities and Investments Commission (ASIC) to withdraw all unaccepted offers under the takeover bid. This withdrawal is in accordance with section 652B of the Corporations Act 2001.
As a result, all offers under the takeover bid that had been accepted at the time of withdrawal are void. All unaccepted offers are also withdrawn, and Genex shareholders will have their shares acquired under the terms of the approved scheme.
The withdrawal of the takeover offer and the approval of the scheme of arrangement are likely to stabilize Genex Power's stock price in the short term. The cash consideration of $0.275 per share under the scheme provides a clear path forward for shareholders. However, the withdrawal of the takeover offer might create some uncertainty among investors regarding future acquisition opportunities.
Investor Reaction:
Investor reaction has been mixed. Some investors are relieved by the clarity provided by the scheme's approval, while others are concerned about the missed opportunity for a potentially higher takeover offer in the future. Analysts suggest monitoring Genex Power's strategic moves post-acquisition to gauge long-term impacts.
Conclusion:
Investors should keep an eye on Genex Power's performance following the implementation of the scheme of arrangement. The company's strategic direction and execution will be crucial in maintaining investor confidence and realizing the potential benefits of the acquisition.