IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a> has entered a transaction implementation deed with <a href="https://www.smartkarma.com/entities/electric-power-development-c" target="_blank" data-smartkarma-citation="entities:292:1" rel="noopener">Electric Power Development C (9513 JP)</a> for a scheme (A$0.275) and an off-market takeover offer (A$0.270). </li>
<li>Skip could vote against the scheme due to the low 10% premium to its 2022 offer and Genex’s operational capacity rising by 2.7x by the end of 2024.</li>
<li>The likely scenario is that J-POWER succeeds with its takeover offer. At the last close, the gross spread of the scheme and takeover offer was 3.8% and 1.9%, respectively.   </li>
</ul>



Genex Power Ltd (GNX AU) has entered a transaction implementation deed with Electric Power Development C (9513 JP) for a scheme (A$0.275) and an off-market takeover offer (A$0.270). 
Skip could vote against the scheme due to the low 10% premium to its 2022 offer and Genex’s operational capacity rising by 2.7x by the end of 2024.
The likely scenario is that J-POWER succeeds with its takeover offer. At the last close, the gross spread of the scheme and takeover offer was 3.8% and 1.9%, respectively.   


Genex Power (GNX AU): J-Power’s Binding Proposal as Skip’s Intentions Remain Unknown

<ul>
<li>
<a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a> has disclosed a non-binding scheme proposal from <a href="https://www.smartkarma.com/entities/electric-power-development-c" target="_blank" data-smartkarma-citation="entities:292:1" rel="noopener">Electric Power Development C (9513 JP)</a> at A$0.275, a 48.6% premium to the undisturbed price of A$0.185.</li>
<li>If the scheme fails, J-Power will launch an off-market takeover offer with a 50.1% minimum acceptance condition at A$0.270 per share. The dual-track bid is meant to counter Skip's stake.</li>
<li>The Board has granted exclusive due diligence until 31 March. The offer is attractive, but the scheme's completion hinges on Skip Capital’s acceptance.  </li>
</ul>



Genex Power Ltd (GNX AU) has disclosed a non-binding scheme proposal from Electric Power Development C (9513 JP) at A$0.275, a 48.6% premium to the undisturbed price of A$0.185.
If the scheme fails, J-Power will launch an off-market takeover offer with a 50.1% minimum acceptance condition at A$0.270 per share. The dual-track bid is meant to counter Skip's stake.
The Board has granted exclusive due diligence until 31 March. The offer is attractive, but the scheme's completion hinges on Skip Capital’s acceptance.  


Genex Power (GNX AU): J-Power’s Dual-Track Non-Binding Proposal

<ul>
<li>
<a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a> received an improved non-binding offer from Skip Capital/Stonepeak at A$0.25 per share, an 8.7% bump from the previously rejected A$0.23 offer.</li>
<li>The headcount test is emerging as a key risk as retail shareholders are voicing their displeasure. The offer is underwhelming based on precedent transactions and average sell-side price targets. </li>
<li>The Board hopes that granting non-exclusive due diligence and stating an intention to recommend a binding A$0.25 offer will force rival bidders to kickstart an auction.    </li>
</ul>



Genex Power Ltd (GNX AU) received an improved non-binding offer from Skip Capital/Stonepeak at A$0.25 per share, an 8.7% bump from the previously rejected A$0.23 offer.
The headcount test is emerging as a key risk as retail shareholders are voicing their displeasure. The offer is underwhelming based on precedent transactions and average sell-side price targets. 
The Board hopes that granting non-exclusive due diligence and stating an intention to recommend a binding A$0.25 offer will force rival bidders to kickstart an auction.    


Genex Gets an Improved A$0.25 Offer, Headcount Test a Risk, Board Hoping for an Auction

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>The agreed Offer has been successful. KKR will hold 83.44% of Albioma’s share capital following the first offer period. The Offer will shortly be reopened at the same price.</li>
<li>Albioma is being taken at 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E, although not as rich as other recent deals, I believe holdouts will tender in the Reopened Offer.</li>
<li>Recommendation is tender rather than wait for an implementation of a forced sale.</li>
</ul>


The agreed Offer has been successful. KKR will hold 83.44% of Albioma’s share capital following the first offer period. The Offer will shortly be reopened at the same price.
Albioma is being taken at 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E, although not as rich as other recent deals, I believe holdouts will tender in the Reopened Offer.
Recommendation is tender rather than wait for an implementation of a forced sale.


KKR/Albioma: Offer Success and Reopening of Offer Period

<ul>
<li>
<a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a> shares rose 44% on the back of an A$0.23 per share offer from Skip Capital and Stonepeak. Skip also increased its stake to 19.99%.</li>
<li>At first glance, the offer looks generous in comparison to peer multiples and recent share prices. However, the offer is opportunistic partly due to Genex’s 500MW pipeline of projects. </li>
<li>Benchmarking the precedent transaction multiples suggests that Genex’s existing portfolio is worth at least A$0.27 per share. The Board should engage for a higher price. </li>
</ul>



Genex Power Ltd (GNX AU) shares rose 44% on the back of an A$0.23 per share offer from Skip Capital and Stonepeak. Skip also increased its stake to 19.99%.
At first glance, the offer looks generous in comparison to peer multiples and recent share prices. However, the offer is opportunistic partly due to Genex’s 500MW pipeline of projects. 
Benchmarking the precedent transaction multiples suggests that Genex’s existing portfolio is worth at least A$0.27 per share. The Board should engage for a higher price. 


Genex’s Offer of A$0.23 from Skip Capital Likely Won’t Cut It

Italy

Falck Renewables SpA produces energy from renewable sources. The Company is creating a portfolio of wind energy projects across Europe, focusing on certain key countries including the UK, Italy, Spain and France.

Falck Renewables SpA (FKR IM)

Genex Power (GNX AU): J-Power’s Binding Proposal as Skip’s Intentions Remain Unknown

Skip could derail the scheme vote. The likely scenario is that J-POWER succeeds with its takeover offer. At the last close, the gross spread of the...

Arun George

Genex Power (GNX AU): J-Power’s Dual-Track Non-Binding Proposal

The NBIO is attractive, but the scheme's completion hinges on Skip’s acceptance. The off-market takeover is the floor price, as the minimum...

Arun George

Genex Gets an Improved A$0.25 Offer, Headcount Test a Risk, Board Hoping for an Auction

Maintain holding or buy with the view of a potential rival bid or that the risk of the headcount test forces Skip/Stonepeak to further bump their...

Arun George

KKR/Albioma: Offer Success and Reopening of Offer Period

Following success of the offer period (83.44% acceptances), KKR intends to reopen the offer with the aim of holding at least 90% and implement a...

Jesus Rodriguez Aguilar

Genex’s Offer of A$0.23 from Skip Capital Likely Won’t Cut It

At first glance, the A$0.23 offer looks generous. Benchmarking the precedent transaction multiples suggests that Genex’s existing portfolio is...

Arun George