Atlassian co-founder Scott Farquhar made a bid to acquire Genex., but the offer was rejected.
👉 Background: Genex Power is an Aussie electricity generation company focussed on renewables. It's focused on turning an old QLD gold mine into new hydro energy storage.
👉 What happened: Scott Farquhar, one of the co-founders of Atlassian, has made an offer to take Genex private for 23 cents a share through his investment fund Skip Capital.
👉 What else: The offer was 64% higher than Genex's share price pre-offer. Buuut Genex says the offer "undervalues" the company and it has a "highly attractive" future. But Genex ain't shutting the door, it just wants a better premium on the offer.
💡A control premium is the amount that a buyer is willing to pay over and above the current share price. Basically, it’s the icing on the delicious cake.
💡 Here's the thing: premiums have jumped significantly in the past few years. In the 2019 financial years the premium was around 27%, by 2020 it was around 50%.
💡 Genex reckons it's future-proof - Australia needs clean energy and plenty of places to put it. So it doesn't really need to say yes to the first, second, or even third offer.
Sign up for Flux and join 100,000 members of the Flux family