Genex Power Limited receives non-binding proposal from J-POWER

Genex Power Limited (ASX: $GNX) has received a non-binding, indicative, and conditional proposal from Electric Power Development Co., Ltd. (J-POWER) to acquire all of the ordinary shares on issue in Genex by way of a members' scheme of arrangement for AS0.275 in cash per Genex Share.

Executive Commentary on the Proposal

The Genex IBC has unanimously determined that it is in the best interests of Genex Shareholders to progress the Indicative Proposal and allow J-POWER to undertake confirmatory due diligence on Genex to assist J-POWER to provide a binding proposal in respect of the Potential Transaction to the Genex IBC.

Summary of the Proposal and Outlook

The non-binding, indicative, and conditional proposal from J-POWER to acquire all of the ordinary shares on issue in Genex presents a potential opportunity for Genex Shareholders. The proposal includes a Scheme Consideration of A$0.275 in cash per Genex Share, representing significant premiums to the last closing price and volume weighted average price of Genex Shares. The Potential Transaction, subject to key terms and conditions, is intended to be funded by J-POWER's existing cash reserves and debt facilities. Genex IBC's intention to recommend the Potential Transaction to Genex Shareholders, subject to certain conditions, reflects a positive outlook for the company. Genex has appointed Goldman Sachs as its financial adviser and Gilbert + Tobin as its legal adviser in relation to the Potential Transaction, demonstrating a proactive approach to the proposal.