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.
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